Furukawa Company G roup

Sustainability
Report 2022
サステ ナビリティ報 告 書

Sustainability Promotion Department
Tokiwabashi Tower, 6-4, Otemachi 2-chome, Chiyoda-ku, Tokyo 100-8370, Japan
TEL +81-3-6636-9511 FAX +81-3-6636-9550
URL https://www.furukawakk.co.jp/en/

Published in November 2022

Sustainability Report 2022 Editorial Policy

Message from Top Management

3

7

Sustainability Management

8

Solving Social Issues through Business11

Contributing through Products, Technology, and Services

13

Strengthening the Business Foundation with a View to Growth15

Targets and Results for Fiscal 2022

17

Report Period

Activity Reports
Environment

19

Society25

Governance37

Positioning of the Sustainability Report

Financial Information
Annual Securities Report
Financial Statements
etc.

“Sustainability” page on the official website
Corporate Governance Report
ESG Data[Environmental Data]
Manufacturing Division of Furukawa Industrial Machinery Systems Co.
Ltd.; Takasaki Yoshii Works of Furukawa Rock Drill Co., Ltd.; Sakura
Works of Furukawa UNIC Corporation; Iwaki Works, Semiconductor
Material Production Section (Semiconductor Material Plant), and Optical Parts Works Production Section (Optical Parts Plant) of Furukawa
Denshi Co., Ltd.; Osaka Works of Furukawa Chemicals Co., Ltd.;
Ashio Office of Furukawa Co., Ltd.; Furukawa Castec Co., Ltd.; Ashio
Rock Drill Co., Ltd.; and FRD Iwaki Co., Ltd.
[Environmental Accounting]
Environmental data report scope, Advanced Technology Department andMaterial Research & Development Department of Furukawa Co., Ltd.

Minoru Nakatogawa,①Industrial Machinery segment

Date of Foundation:②

August 1875④

Date of Establishment: April 1918
Capital:¥28,208.18 million (as of March 31, 2022)

Fiscal Year End:March 31

Employees:

2,804 (consolidated) (as of March 31, 2022)

51.7%

Net sales 15.5%¥199.0 billion(FY 2022)

③

14.2%

②Rock Drill Machinery segment③UNIC Machinery segment④Metals segment⑤Electronics segment⑥Chemicals segment⑦Real Estate business⑧Others

Group Businesses
Manufacturing, sales, and service of industrial machinery such as pumps,

Industrial
MachinerySegment

Furukawa Industrial
Machinery Systems
Co., Ltd.

Rock Drill
MachinerySegment

Furukawa Rock Drill
Co., Ltd.

UNIC Machinery
Segment

Furukawa UNIC
Corporation

Manufacturing and sales of UNIC cranes (truck-mounted UNIC

Metals Segment

Furukawa Metals &Resources Co., Ltd.

Manufacturing and sales of copper, gold, silver, sulfuric acid, etc.

Electronics
Segment

Furukawa Denshi
Co., Ltd.

Chemicals
Segment

Furukawa Chemicals
Co., Ltd.

Real EstateBusiness

Furukawa Co., Ltd.

crushers, grinders, classification machines, briquetting machines, belt conveyors, environmental preservation equipment, recycling plants, steel structures, and bridges, as well as contracting for various construction work.
Manufacturing and sales of hydraulic breakers, hydraulic crushers, blast
hole drills (pneumatic and hydraulic crawler drills, down-the-hole drills, attachment drills, etc.), tunnel construction and mining machinery (tunnel drill
jumbos, concrete spraying machines, mining drill jumbos, etc.), etc.

cranes), mini-crawler cranes, ocean cranes, UNIC carriers, etc.

[Other]Furukawa Co., Ltd. and consolidated subsidiaries

Guidelines Referenced

・“Sustainability Reporting Standards” by the Global Reporting Initiative (GRI)
・“Environmental Reporting Guidelines, 2018 Version” by the Ministryof the Environment
・“Environmental Accounting Guidelines, 2005 Version” by the Ministryof the Environment
・“JIS Z 26000: 2012 Guidance on Social Responsibility (ISO26000:
2010)” by the Japanese Standards Association
Furukawa Co., Ltd.:The operating holding company of the Group
Furukawa Company Group:
32 consolidated subsidiaries and five equity method affiliates
Core Business Companies:
Furukawa Industrial Machinery Systems Co., Ltd.,
Furukawa Rock Drill Co., Ltd.,
Furukawa UNIC Corporation,
Furukawa Metals & Resources Co., Ltd.,
Furukawa Denshi Co., Ltd.,
Furukawa Chemicals Co., Ltd.
September 2022 (Previous: September 2021, Next: Scheduled for
September 2023)

Sustainability Report 2022

⑧0.9%

①
8.9%

President & Representative Director

Report Scope

Report Publication Date

1

⑤3.7%

Representative:⑦1.1%

Othersand mining and sales of limestone

Manufacturing and sales of high-purity metallic arsenic, crystal
products, cores and coils, aluminum nitride ceramics, opticalparts, etc.

Manufacturing and sales of sulfuric acid, ferric polysulfate solution,
aluminum sulfate solution, cuprous oxide, cupric oxide, etc. andsales of titanium dioxide, etc.

Real estate business, leasing business, etc.
Main building: The Muromachi Furukawa Mitsui Building

Governance

Sustainability Report

Chiyoda-ku, Tokyo 100-8370, Japan

In principle, this report covers initiatives in fiscal 2022 (from April 1, 2021
to March 31, 2022), but it also includes some initiatives in fiscal 2023.

Company Names

Non-Financial Information⑥4.0%

Society

Annual Report(Integrated Report)

Tokiwabashi Tower, 6-4, Otemachi 2-chome,

Environment“Investor Relations” page on the official website

FURUKAWA CO., LTD.

Sustainability of the Furukawa Company GroupManagement Philosophy

Company name:Head Office:Message from Top Management

Sustainability of the Furukawa Company Group

Ratio of Group Net Sales

Corporate Data (as of September 30, 2022)

Machinery Business

2

Group Overview

Materials BusinessGroup Overview

The Furukawa Company Group issued its first environmental report in
2003, and has been issuing CSR reports with enhanced information
relating to their corporate social responsibility since 2013.
On December 1, 2021, the Group reorganized its framework for
promoting CSR to the framework for promoting sustainability. With
the changes taking place in environmental and societal circumstances, it also became necessary to enhance our disclosure content. For
these and other reasons, beginning this year we changed the nameof this report to the Sustainability Report. We are committed to providing enhanced content that clearly explains the Group's conceptual
approach to sustainability and our medium- to long-term growth potential in non-financial terms.
Also beginning this year, we are issuing this report in PDF format
out of consideration for the environment and related reasons. For numerical data on the environmental and personnel matters, please referto the separate ESG Data 2022.
We have created this report in coordination and collaboration withthe departments concerned, and the edited result is published withthe approval of the President & Representative Director, who is Chairperson of the Sustainability Promotion Meeting.

Group Overview

CONTENTS

2022

CONTENTS

Sustainability Report

Real Estate Business and others

Furukawa Company Group

Transportation business, manufacturing and sales of metal powder, etc.

Sustainability Report 2022

2

Message from Top Management

We recognize climate change as a top priority issue. The
Japanese government has declared the goal for fiscal 2031 ofreducing greenhouse gas emissions by 46% from the level infiscal 2014, and achieving carbon neutrality by 2050. We realizethat the Group naturally has responsibilities that we should
address, and we are scheduled to finalize our initiative at an earlydate on the premise of "reducing CO2 emissions by 46% relative
to fiscal 2014 by fiscal 2031" and "achieving carbon neutrality byfiscal 2051."
Of Scope 1*2 and Scope 2*3 CO2 emissions, 80% of theCompany's emissions are from electric power, which is Scope 2.
Other than reducing emissions through our own efforts, such as
by saving energy and streamlining facilities, we are also studying
a transition to clean energy that comes from renewable energy
sources. We would also like to calculate the amount of CO2
absorbed by the forests the Company owns, and add that to theamount of reduction.
We are also calculating our Scope 3*4 emissions, and wewill proceed with planning to enable us to accurately grasp thevolume of emissions throughout the entire value chain.
The times are already dashing toward a carbon-free society,and I see a further accelerating shift toward a society that
consciously seeks to balance the economy and the environment.
What is important when creating that kind of society is researchand development and innovation to achieve carbon neutrality.
The purpose of research and development is to resolve society's
issues, so we would like to proceed to research and develop
what will accomplish this.
For example, in developing hydraulic crawler drills, truckmounted UNIC cranes, and other such products in the machinery
business, we are actually pursuing a variety of measures, such as
reducing fuel consumption, developing electrified products that
do not use gasoline, and so on.
We take this as a positive opportunity for practicalimplementation of marketing management that incorporates
the CSV perspective. We will contribute to the realization of acarbon-free society by providing products, technology, services,and so on that are highly effective in reducing emissions of

Sustainability Report 2022

Governance

Sustainability Report 2022

The Furukawa Company Group originated in mining development,
and in the long history of 147 years since then, our business has
undergone many changes. Currently, we provide machinery
products that support infrastructure improvement in Japan andother countries, and products, technology, services, and so on thatare indispensable to the growth of an advanced information society.
The Group has faced up to difficult social issues head-on andwe have joined with our stakeholders to work on solutions. In the
Rock Drill Machinery segment, for example, the fully automatic
drill jumbo is a product that was developed because there were

What are your plans for initiatives relating
to climate change issues and information
disclosure related to these initiatives?

Society3

What is the Furukawa Company Group's
role and mission in society?

a corporation engages with social issues involving social problems,
environmental problems, and so on, and seeks to realize a balance
between social value and corporate value.

Environment

Fiscal 2022 was the middle year of the Medium-Term Business
Policy 2022, and it was the period for solidly fortifying ourbusiness foundation with a view to realizing Vision for 2025.
In addition to the COVID-19 pandemic, there was also theRussian invasion of Ukraine and the slowdown in supply ofparts due to a semiconductor shortage. This and other factors
imposed serious constraints on business activity, in the midstof which we operated our businesses while responding to abusiness environment that was changing day by day. Fiscal 2022
suffered the negative effects of shortages of semiconductors
and key components, rising costs of raw materials and energy,
and spiking freight rates due to the shortage of container
shipping capacity. However, increases in revenue and profit bothexceeded the initial predictions by comparison with fiscal 2021,
which saw major setbacks due to the COVID-19 pandemic, andI am grateful for the efforts made by our officers and employees.
Even under conditions like these, we are moving forward

strategically to improve the growth potential and profitabilityof the machinery business, which is our core business. The
fields we focus our energies on are of use in protecting theenvironment while aiming for realization of a sustainable society,and in building a safe and secure society. We want to channel theGroup's products, technology, and services into solutions for ourcustomers' issues.

*1 Creating shared value (CSV): This is a management framework by which

Sustainability of the Furukawa Company GroupOne year has passed since you becamepresident in June 2021, what do you say
about looking back?

Under the former framework for promoting CSR, activities
for planning, execution, disclosure, and so on with respect
to corporate social responsibility (CSR) and in response torequests for disclosure of non-financial information related tothose activities, were centered in the CSR Promotion Meeting,which was established in 2013. Eight years had passed since its
establishment, and the environment for business had changed
enormously, so we decided to take steps to promote sustainability
activities, which address a broader range of issues even than
CSR. To that end, we reorganized that body as the Sustainability
Promotion Meeting in December 2021 and changed to theframework for promoting sustainability.
We also reorganized the CSR Promotion Department, which
had carried out the role as promoter of CSR activities. It became
the Sustainability Promotion Department, which was given
the role of consolidating and organizing activities for strongly
promoting sustainability initiatives. At the same time, we also shut
down the previous Risk Management Committee, which had
been a subordinate organization of the CSR Promotion Meetingand established the new Risk Management Committee as aparallel organization of the Sustainability Promotion Meeting. Wechanged this new Risk Management Committee into a system
for recognizing and managing enterprise risks while coordinatingwith the Sustainability Promotion Meeting.
As president, I chair the Sustainability Promotion Meeting.
The new Risk Management Committee is chaired by the Director
in charge of the Sustainability Promotion Department, which actsby order of the President or the Board of Directors to investigate,
deliberate on and draft proposals regarding the board's agenda
items and report on them. This allows us to rank issues thatmanagement should address in order of priority, and we will also
be quickly tackling issues that cut across the Group as a whole.
At the same time, we also formulated the Furukawa
Company Group Basic Policy on Sustainability Initiatives. This
states clearly that the Group positions sustainability initiatives
among the most important issues for management. We willcontribute to the realization of a sustainable society while at thesame time establishing a robust business foundation oriented
toward growth. By solving social issues through business, wewill realize sustainable growth as well as heightened corporate
value over the medium to long term. The initiatives for practicalimplementation of this basic policy are defined as sustainability inboth defensive and proactive aspects.

Message from Top Management

President & Representative Director

Defensive sustainability involves strengthening and expanding
the enterprise risk management system in order to establish
a business foundation oriented toward growth, and improving
corporate value by implementing business operations that take
into account the Group's CSR/ESG issues. Proactive sustainability
seeks to raise the value of the Furukawa brand by marketing
management that incorporates the CSV*1 perspective. It is also an
initiative to provide products, technology, and services that are usefulin resolving social issues as a way of contributing to the creationof social value while we simultaneously create corporate value. By
strengthening our engagement with sustainability in this way, we
will work to reduce risks and capital costs while also working tomaximize business opportunities and increase profitability.

Group Overview

Minoru Nakatogawa

The "framework for promoting CSR"
has been changed to the "framework for
promoting sustainability." What is the
background and purpose of this change?

CONTENTS

From CSR to Sustainability
Rapidly responding to social issues,
we aim to realize our Management
Philosophy.

demands to ensure worker safety at mountain tunnel construction
sites, and also to resolve the issue of the diminishing number ofskilled workers. By making use of ICT and automating drilling work,
we achieved higher efficiency and accuracy than ever before.
You could say that the commitment to engaging seriously withsocial issues is an unchanging part of our Group's corporate DNA.
I believe that our Group's role and mission in society is tomake active use of the technical capabilities we have cultivated
to date, and also to combine them or further innovate to evolveand expand the technology, and to channel it into solutions forpresent or future social issues.

4Message from Top Management(combustion of fuel, industrial processes)*3 S cope 2: Indirect emissions accompanying the use of electric power,

companies associated with the business operator's activities)*5 T ask Force on Climate-Related Financial Disclosures (TCFD): Establishedby the Financial Stability Board (FSB) at G20 request to study how
to conduct climate-related information disclosure and how to handle
responses to financial institutions.

What about human capital and investment in people?

Please tell us about your initiatives forrespect for human rights.

What kinds of measures are being taken
to strengthen governance?
With regard to strengthening governance, and in particularvitalizing the Board of Directors and enhancing its functions,
we are taking steps to vitalize and enhance deliberations byproviding explanations in advance to Outside Directors so thatthey will be able to participate in Board of Directors’ activities withfull awareness of the substance of agenda items in advance. In
addition, every year we conduct a survey of all the Directors andall Audit & Supervisory Board members. We incorporate theirviews in the operation of the Board of Directors, making every
effort to further heighten its effectiveness.
We are currently proceeding with revision of Vision for 2025,
which was established in 2015, and formulation of the MediumTerm Business Plan for the next period. In this work, as well, we
will ask the Outside Directors for their objective opinions in lightof their specialized experience and expert knowledge, and wewill engage in continuing discussion of our medium- to long-termbusiness strategy.

Please tell us about activities in fiscal
2022 relating to sustainability, the results,
and so on.

Sustainability Report 2022

As I am in the position of having management in my hands, I will
say that in fiscal 2023, we will carry on with measures to keepsolidifying our business foundation, and formulating the MediumTerm Business Plan for the next period is positioned as one ofour major issues. During the period when we were formulating
the previous Medium-Term Business Plan, we were unable toforesee the impact of the COVID-19 pandemic. Thus, unable toformulate the Medium-Term Business Plan, we formulated theMedium-Term Business Policy 2022, which has brought us up
to the present. The preconditions for our long-term Vision for2025 have also ended up changing. In order to respond tothese changes, I want to formulate a Medium-Term Business
Plan by considering growth strategies, without dwelling on thecontent of our present Vision for 2025. At the same time, I think
it will be necessary to incorporate sustainability initiatives in ourbusiness plans for the medium to long term. For the purpose of
the Group's sustainable value creation, we are concentrating ourefforts on formulating business plans that include the influence ofcontribution to social issues through business, and risks related
to climate change, in our management strategy.
As the business environment undergoes dramatic change, all
the officers and employees, including myself, will share the same
vision of how to secure sustained growth for the Group. Together
with hope and strong resolve for the future, we will work withspirit toward achievement of our vision.
Our aim going forward is to respond to our stakeholders'
expectations by realizing the Management Philosophy that callson our continued existence as a corporation indispensable tosociety.

Sustainability Report 2022

Governance5

In closing, do you have a message foryour stakeholders?

Society

Looking ahead to 2025, when the Group, as noted earlier,reaches the 150th anniversary of our founding, we have prepared
Vision for 2025, titled "FURUKAWA Power & Passion 150," andwith that we also have created our "Ideal Image for CSR 2025."
On that basis, and using back-casting from fiscal 2026, we areformulating CSR medium-term targets (fiscal 2021-2023) andpromoting activities accordingly.
Our main initiatives include the review of training systems
noted earlier, implementation of surveys of suppliers in our supply
chain, and study of carbon neutrality. In addition to these, we took
the opportunity of the relocation of our head office in July 2021
to introduce a free address system to encourage communication
between departments, and to improve operational efficiency by*6 XR: Abbreviation for Extended Reality or Cross Reality. Technology thatblends the real and virtual worlds to enable perception of things that do
not exist in reality.

Environment

As to respect for human rights, it is becoming a crucial
perspective in corporate activity as well as in the recent worldwide
emergence of human rights problems, the passage of legislationin Europe for human rights due diligence in the supply chain,and other such movements. Showing consideration for humanrights is the obvious, natural thing to do. For our Group, whichis conducting business globally, the matter of what appropriate
measures to take and information disclosure to make regarding
human rights issues is a management issue that we consider tobe of increasing importance.
To date we have implemented a variety of measures within
the Group in connection with human rights issues. We have
implemented human rights training, heightened awareness ofcompliance, improved the internal reporting system, conducteddiscussions with the labor union, and so on. In addition, theCompany's Purchasing Department is conducting a survey ofpromoting paperless and online decision making.
From the perspective of measures against infectious disease,
we have also increased our use of web conferencing andvideo streaming for training. We have also implemented safety
guidance, training, and other activities through the use of XR*6
to enable a more fully involved, immediate experience of safety
countermeasures.

Sustainability of the Furukawa Company GroupAs I see it, the Group's driving force and its strength are in its
people. The Group originated in copper mine development andhas gone on to provide things considered necessary by society,from industrial machinery to rock drills, transportation equipment,
electronic materials, and chemicals. In our nearly 150 years ofhistory, the things we deal in have diversified and our businesses
have expanded, but it was our individual employees who carried on
our skilled manufacturing. We have survived for close to 150 years
because we have been supported by the power of our people.
For that reason, I consider it extremely important to invest
in people for the Group to continue advancing toward theachievement of sustainable growth in the future.
As a specific measure, we revised the personnel systemin fiscal 2021 to actively facilitate the promotion of younger
employees. We anticipate that clearly linking employee willingness
and performance to their promotion and advancement will
help motivate them. As to education and training, we havebeen introducing Liberal Arts training in order to foster flexible

Message from Top Management

heat, or steam supplied from other companies*4 S cope 3: Indirect emissions other than Scope 1 or 2 (emissions by otherdomestic suppliers in our supply chain and is confirming thestatus of their responses to human rights issues, including childlabor and other issues. However, as we see with the responsesought with respect to human rights due diligence in Europe andother places, the issues involved in securing respect for humanrights keep on changing according to societal changes.
Going forward, we have plans to establish an organization for
discussion related to human rights issues, and the discussion willof course cover the human rights of Group employees, but will
also cover human rights issues in the value chain. At present, theFurukawa Company Group’s Charter of Corporate Conduct andthe Furukawa Company Group’s Code of Conduct for Officers
and Employees contain explicit statements about respect forhuman rights. Going forward, however, we are going to study theformulation of human rights policies that are in accordance withinternational norms.
In order to promote initiatives on respect for human rights,
it is necessary to take a company-wide approach. The entire
Group will join together in this, with the effort centered in the
Sustainability Promotion Meeting and the Risk Management
Committee.

Group Overview*2 S cope 1: Direct emissions of greenhouse gases by business operators

thinking that takes a multifaceted view from various directions.
In addition, for engineers, we are conducting technical trainingthat also includes management and financial viewpoints. We
have also revised our former system of annual training so that,beginning in fiscal 2023, we began a training program based on
the qualifications of our employees.
The times are predicted to go on changing at an accelerating
rate, leading to much greater demand for acquiring and cultivating
human resources with the capability for flexible thinking that
can anticipate change and respond to whatever issues arise
in society. We will therefore proceed with enhancement of theeducation system, in hiring we will actively seek mid-career hires,and we will make active use of diverse human resources. At thesame time, we will also promote diversification of work styles. We
aim for a workplace where individuals can utilize their capabilities
to the utmost in creating new value, to make the Company aplace where they find their work satisfying. Therefore, we will
endeavor to secure and cultivate superior human resources inline with Group growth strategy.

CONTENTS

greenhouse gases.
There is also the matter of disclosure of climate-related
financial information. The revised Japan’s Corporate Governance
Code calls for disclosure in line with the TCFD*5 recommendations,and we intend to disclose climate change-related governance,
strategy, risk management, indicators, and targets.
With Furukawa Company Group management in my hands,
I will take the lead and go forward with speed.

6Sustainability of the Furukawa Company Group

Basic Approach
The Furukawa Company Group has been promoting its business activities such as full-scale manufacturing and structural development
development, while reinforcing its governance framework and compliance practices. The Group will continue to promote these CSR
activities, and promote initiatives around sustainability as stated in Vision for 2025, "increase the value of the Furukawa brand through'marketing-based management' that incorporates CSV perspectives" and "increase corporate value by emphasizing business practices
that reflect CSR/ESG issues recognized and to be solved by the Group" more strongly than before, in order to achieve sustainable growthand enhance corporate value over the medium to long term.

Innovation We will work constantly at self-innovation by embracing a future-oriented mindset.

Message from Top Management

In order to live up to our Management Philosophy, we put our Action Guidelines of Innovation, Creativity,and Harmony into practice, always bearing in mind the three key words that best represent the spirit of
our founder: Luck, Stolidity, and Perseverance.*1

Group Overview

carried out thus far, as well as various CSR activities involving environmental conservation, social contribution, and human resource

Action Guidelines (Established on August 8, 2015)

Management Philosophy / Sustainability Management

The Furukawa Company Group will remain indispensable to society by always embracing the spirit ofchallenge, advancing the technologies that have underpinned the foundation of society that originated inmining development.

Sustainability Management

CONTENTSManagement Philosophy (Established on August 8, 2015)

Creativity We will seek to create reliable, appealing products that meet market needs.

*1 Luck＝運 (Un), Stolidity＝鈍 (Don), Perseverance＝根 (Kon)This means that, while humans may place highest importance on "luck," getting important things done requires "stolidity" and "perseverance".

Defensive
aspectVision for 2025

FURUKAWA Power & Passion 150“Become a corporate group that leverages its reputation for category
leadership and uniqueness to deliver growth.”- Targeting consolidated annual operating income regularly in excess of ¥15 billion as
we approach our 150th anniversary in fiscal 2026. -● Policies for Achieving Vision for 2025
1

Increase the value of the Furukawa brandthrough “marketing-based management” thatincorporates CSV*2 perspectives①Reinforce revenue bases in growing overseas markets, mainly
in business related to infrastructure and resource development②Strengthen and enhance stock business③Maximize business opportunities by demonstrating comprehensive
Group competences and reinforcing engineering strengths[Improve profitability]

Strengthen and expand our human resource bases

Actively promote investments to increase corporate value①Make proactive capital investments necessary for growth②Expand business through strategic M&A and alliances

5

Establish a robust corporate foundation①Increase corporate value by improving profitability andcapital efficiency, targeting ROE of more than 10%②Establish a strong financial base③Achieve balanced appropriations between investments
for growth and return to shareholders④Increase corporate value by emphasizing businesspractices that reflect CSR/ESG issues recognized and tobe solved by the GroupStrengthen and expand the enterprise risk management system

Management Philosophy
In order to respond to anticipated changes in the business environment, the Group established its Management Philosophy and Action
Guidelines, which express the shared values of the Group's officers and employees using language that is easy to understand, on August
8, 2015, which marks the Company's 140th anniversary.
In order for the Company to remain necessary and trusted in modern society with its diverse values, it was determined that it isnecessary to further improve, and this new Management Philosophy was developed to address this need. The Corporate Philosophy
developed in May 1999 will remain in place in the form of the Action Guidelines.

"FURUKAWA Power & Passion 150," our Vision for 2025
The Group considers 2015 to be an important turning point as it gets closer to its 150th anniversary. As such, it has formulated policies
to achieve Vision for 2025 "FURUKAWA Power & Passion 150," from the long-term perspective of looking forward 10 years in the future.
On May 8, 2020, we made partial revisions to Vision for 2025. We did this in advance of our entry into Phase 2 of Vision for 2025
to reaffirm the reason for our existence and mission contained in the phrase "The Furukawa Company Group will remain indispensable
to society" from our Group's Management Philosophy, incorporate the perspectives of CSV into the marketing-based management wepromote as a Group in order to redefine it, and clarify our intent to improve the corporate value of the Group through business operation
conscious of CSR/ESG issues as part of our effort to establish a robust corporate foundation.
Sustainability Report 2022

Governance

Sustainability Report 2022

Maximize opportunities[Reduce capital cost]Society

7

Reduce risk

Environment*2 CSV: Creating shared value (CSV) is a management framework thatenables companies to co-create social value and corporate value
by tackling social, environmental, and other issues.

Sustainably expand the Machinery Business①Build vibrant human resources and corporate culture fora new Furukawa②Secure, utilize, and develop diverse human resources inJapan and overseas③Put even more effort into training sales and marketing
personnel
4

Contribute to the SDGs through“marketing-based management”
that incorporates CSV perspectives

Targets and Results for Fiscal 2022

①Reinforce technological sales capabilities (proposals andsolutions) reflecting customer needs②Develop products, technologies and services that meetmarket needs③Achieve category-leading positions by concentrating on
niche products that have competitive advantages andusing differentiation strategy④Cultivate and create new markets and product categories,
and build a new business model⑤Enhance our products, technologies, and services, which
underpin our social infrastructure, to help resolve social issues

3

Enhance corporate value byemphasizing business practices
that reflect CSR/ESG issues

Strengthening the Business Foundation with a View to Growth

We will incorporate marketing into the core of management
to provide products and services recognized as valuable inchanging markets, as well as to resolve issues and problems
faced by customers, with the aims of increasing corporate value
and achieving sustained growth. We will also strive to achieve
the Sustainable Development Goals (SDGs) and otherwise
resolve various social issues, including such domestic issues
as building national resilience and the declining working-age
population, and thus help realize a sustainable society.

2(Expand and strengthen
non-financial capital)

Resolve social
issues throughbusiness

Contributing through Products, Technology and Services

Establish a robust
corporate foundation
for growth

Proactive
aspectSustainability of the Furukawa Company Group

Solving Social Issues through BusinessHarmon y We will improve management transparency and contribute to the development of a society that is in harmony with the environment.

8

Sustainability of the Furukawa Company GroupThe Furukawa Company Group formulated "Ideal Image for CSR 2025" in order to think about what sort of CSR activities should be
conducted once Vision for 2025 "FURUKAWA Power & Passion 150" has been achieved.

Helping to Address Challenges
Encountered Worldwide

Ideal Image for CSR 2025 (Revised on May 2022)

action plan for human and environmental prosperity. The SDGs
consist of 17 goals and 169 targets looking toward 2030, such

Reduce environmental impacts, protect environment and ensure safety, protect biodiversity, publish environmental and safety activity
outcomes, and continue working to ensure there are zero accidents and zero disasters at suspended or abandoned mines

We aim to improve brand strengths of Furukawa products and achieve top rankings in product categories.

global-scale initiatives to address those issues.

We will pursue a QCD* approach based on sustainability activity practices geared to achieving sustainable
manufacturing and sales of products that earn the trust of our customers.

Promoting environmental conservation initiatives

P19

The Group identifies important issues and reinforces its CSR

Providing products and services that engender customer satisfaction

P25

activities to ensure that its business activities contribute to

Building fair and just business relationships and reciprocal trust with suppliers

P29

society in the broader sense.

Creating pleasant workplace environments for employees with fair
performance evaluations and treatment

P31

Promoting corporate social contribution activities

P36

Developing a robust corporate governance framework

P37

Enhancing compliance

P40

To identify CSR priority issues, we selected important CSR-

* QCD: Quality, Cost, and Delivery

related issues from the perspectives of both stakeholders andthe Group, then analyzed and evaluated the importance of those

Framework for Promoting Sustainability

issues and finalized the Group’s CSR priority issues.

Steps to identifying
priority issues

Sustainability Promotion
Meeting
Comprehensive
Deliberations on
Sustainability and CSR

Interaction

Risk Management
Committee
Comprehensive
Deliberations on
Enterprise Risks

Extract issues

Evaluate importance tostakeholders and the Group

Refer to the website “Investor Relations”

Analyze theimportance of issues

Decide and approvepriority issues

Relationships with Stakeholders
In the course of strengthening our sustainability initiatives and implementing our Management Philosophy, we have identified our
stakeholders as follows: customers, business partners shareholders and investors, employees, local communities, and the global

Reporting Interaction

Implementation Bodies (PDCA cycle)
Furukawa
Co., Ltd.

Stakeholders

Business
partners

We shall build and maintain mutually beneficial relationships conduciveto harmonious coexistence through stable procurement activities
based on the principles of fairness and economic rationality.

Procurement activities and information exchanges, CSR promotion guideline
surveys, technical guidance, production briefings, etc.

Shareholders
and investors

We shall work to maximize corporate value through communications
focusing on timely and appropriate information disclosure and IR
activities.

Results briefings, shareholders’ meetings, IR meetings with institutional
investors and analysts, factory tours, annual report (integrated report) and othersuch IR tools, information disclosure on the website, distribution of IR news, etc.

Employees

We shall create safe, healthy, and motivating workplaces in which ourdiversified human resources can excel while adopting appropriate
evaluation standards and fair treatment.

Employment Grade-Specific Training, personnel performance evaluation and target
evaluation system, self-assessment system, discussions between management
and labor unions, employee surveys, internal reporting system, etc.

Furukawa UNIC Corporation

Local
communities

We shall build and maintain favorable relationships of trust by pursuingsocial contribution activities aimed at harmonious coexistence withlocal communities.

Contributions to local communities through business, participation in volunteer
activities, etc.

Furukawa Metals & Resources Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.

Globalenvironment

We shall protect biodiversity by developing environmentally friendly
technologies and products while minimizing the environmental impact of ouractivities through savings of energy and resources and reduction of waste.

Cooperation with groups and NPOs that engage in tree planting activities,
ecosystem restoration and recovery activities with local residents, disclosure ofenvironmental and other data in sustainability reports, etc.
Sustainability Report 2022

10

Governance

Service activities, sales activities, websites, exhibitions, meetings to exchange
views with distributors and agencies, etc.

Targets and Results for Fiscal 2022

We shall provide customers with safe, high-quality products andservices in order to increase satisfaction levels.

Furukawa Industrial Machinery Systems Co., Ltd.
Core BusinessCompanies

Opportunities and Means for Communication with Stakeholders

Customers

Relevant Departments

Furukawa Rock Drill Co., Ltd.

Responsibilities

Society

Instruction

communications that involve clearly conveying our responsibilities to each group of stakeholders.
Strengthening the Business Foundation with a View to GrowthCompliance Committee
Environmental & Safety Management Committee
Quality Assurance Committee
Sustainability Promotion Department
Human Resources & General Affairs Department
Purchasing Department

environment. Moreover, we aim to build relationships of trust and accordingly maximize our corporate value by engaging in appropriate

Environment

Sustainability Promotion
Department (Secretariat)

Contributing through Products, Technology and Services*

Reporting*Communicating with shareholders and investors

Board of Directors/
President & Representative
Director
Instruction

Relatedpages

Priority issues regarding CSR

Priority Issues Regarding CSR

Sustainability of the Furukawa Company GroupAll of our officers and employees will be keenly aware of compliance as it applies to the international
community.

efforts geared to fulfilling its corporate social responsibilities.

Solving Social Issues through Business

Promote sustainability initiatives.
Expand the enterprise risk management system, promote disclosure related to sustainability, promote proactive sustainability activities,
establish environmental and human rights due diligence systems, support measures for carbon neutrality

the international community, through its business activities andMessage from Top Management

We will develop rewarding work environments where it is possible to create new forms of value by maximizing the abilities of each andevery employee

Sustainability Report 2022

related to sustainable development and are intended to encourage
The Group strives to help achieve the SDGs, established by

Expand and strengthen our human resource bases.

In December 2021, the Group reorganized its CSR Promotion
Meeting, which had been established in Furukawa Co., Ltd. in order
to vigorously promote CSR initiatives, into the Sustainability Promotion
Meeting to strengthen its sustainability initiatives. By implementing thisreorganization, the Group is actively working to resolve issues related
to sustainability by clarifying its responsibilities to its stakeholders, andidentifying priority issues that need to be addressed to realize "TheFurukawa Company Group Basic Policy on Sustainability Initiatives."
The Sustainability Promotion Meeting convenes annually as arule with our President & Representative Director as the Chairperson
and the Sustainability Promotion Department as its Secretariat.
The Meeting deliberates on a variety of sustainability and CSR
issues, including formulation of basic policy and action plans for theGroup's sustainability and CSR activities, establishment of promotion
framework, verification and evaluation of the status of activities,
education and public information measures, and so on.
Other serving members of the Sustainability Promotion Meetingare the Company's directors and the president of every Core BusinessCompany as well as the chairperson of the Compliance Committee,
the Environmental & Safety Management Committee, and the Quality
Assurance Committee, which are the Company's organizations, together
with the heads of the Company's Sustainability Promotion Department,
Human Resources & General Affairs Department, and Purchasing
Department. The members consider the substance of deliberations andmatters raised during the meeting and take steps to coordinate with theGroup companies and departments that are the implementation bodies
for sustainability and CSR activities, implementing the PDCA cycles ofplanning, execution, evaluation, and improvement.
They also coordinate with the new Risk Management Committee,
which is the organization that engages in the enterprise risk
management system. This Committee replaces the previous Risk
Management Committee, which was disbanded in December 2021.
We will continue to improve these frameworks for reducing risk andmaximizing opportunity in Group businesses.

that help clarify priority global-scale issues and a worldwide vision

Group Overview

its Sustainable Development Goals (SDGs) and presented an

Management Philosophy / Sustainability Management

In September 2015, the United Nations General Assembly adopted

The Group is promoting activities to achieve the ideal image in order to continue to be a company that is indispensable to and trusted by society.

Promote environmental and safety activities.

9

CONTENTS

Ideal Image for CSR 2025

Sustainability of the Furukawa Company Group

Infrastructure Improvement, Contribution to Flood Measures and Water Environment, and Response to Aging Society

Stable Supply of Products that Form a Foundation for Industry

In recent years, tunnel construction sites, mines, and quarries in Japan have been experiencing aging of skilled workers and shortagesof personnel in charge. As a result, methods of saving labor and increasing safety at work are highly sought. The Rock Drill Machinery
segment seeks to meet these needs with drill jumbos that utilize ICT as well as with automation andmechanization of tunnel construction-related products and crawler drills, which are contributing to
the resolution of these issues. In Southeast Asia, where pneumatic rock drilling products are still inthe majority, we have introduced attachment drills for excavators equipped with hydraulic drifters as
suggested solutions for increasing work efficiency and improving the work environment.
As domestic after-sales services for rock drilling products, we are installing an operation support system utilizing
IoT and reviewing our products and service structure to provide support throughout the product life cycles.

High Level ofContribution

UNIC Machinery Segment (Furukawa UNIC Corporation)
Improving Business Efficiency, Labor Saving, and Addressing Climate Change

Sustainability Report 2022

The Chemicals segment is supplying aluminum sulfate solution as an inorganic water treatment agent in order to contribute to the supplyof high-quality tap water. We are also providing ferrous sulfate for use in food additives and supplements, as well as high-quality sulfuric
acid, a high-value-added product with reduced impurities that is used in electronics-related materials.
Copper powder, which is a newly developed product, is a material that we expect will find use in making components needed for control in
automated operation and electric vehicles. This material is also expected to contribute to the expansion of 5G in the telecommunications field.
By adding higher value to existing products, such as high-quality sulfuric acid, we areaiming to meet our customers' new needs and provide solutions for the issues they face.
In the area of our newly developed products, such as copper powder, we have put inplace systems for quality, mass production, and sales. We will continue striving to provide
a stable supply of high-quality products that contribute to fields involved with automatedoperation, telecommunications systems, and so on.
SDGs withHigh Level ofContribution

Sustainability Report 2022

12

Governance

SDGs withHigh Level ofContribution

Stable Supply of High-Value-Added Products

Targets and Results for Fiscal 2022

premium on carbon neutrality, there are accelerating efforts toward electrification of trucks that are
to be equipped with cranes. The electrification of mini-crawler cranes has already been realized,
but in conjunction with the effort on trucks, we are also moving ahead on the electrification of truckmounted UNIC cranes and UNIC carriers, and we will continue contributing to CO2 reduction.

Chemicals Segment (Furukawa Chemicals Co., Ltd.)

SocietyIn the Unic Machinery segment, we are working to make contributions toward solutions to social issues such as aging society and labor
shortages. In logistics, truck-mounted UNIC cranes and UNIC carriers improve logistics efficiency and labor savings. In the fishing industry,ocean cranes contribute labor savings, and UNIC PALs also save labor in the forestry industry. Our overseas work also includes active
on-site participation in infrastructure construction that is intended to enhance social capital in developing countries and other locations.
On the environmental side, we are making efforts in consideration of the environment surrounding worksites by reducing noise and improving
fuel efficiency. We are also contributing to the reduction of CO2. Now that the present era puts a

SDGs withHigh Level ofContribution

Strengthening the Business Foundation with a View to Growth

impact.
SDGs with

High-purity metallic arsenic and aluminum nitride ceramics in the Electronics segment are used inelectronic devices such as ICs and LSIs, various semiconductor devices, sensors, and other products
for the automotive industry, as well as for building infrastructure and promotion of innovation. Coils areused in PHVs, EVs, fuel cell vehicles, and so on, and they are contributing to realize environmental
measures and the reduction in fuel consumption. Oxide crystals are used in medical X-ray and CT
scanning equipment as well as in the large cargo inspection machines and other such devices thatare required in airports and other such facilities. They also contribute to labor saving in logistics.
We will further promote product development that leads to resolution of customer issues throughenhancement of high-value-added aluminum nitride ceramics, as well as improvement of diffractive
optical elements (DOE), and other such optical products for laser processing. With automation, laborsaving, promotion of good health, and other similar measures, we will contribute to the creation of aconvenient and comfortable society.

Environment

Going forward, we will continue our commitment to provide products and services that take into
consideration exhaust gas regulations, CO2 reduction, and other measures to reduce environmental

Contributing to Environmental Measures and the Creation of a Convenient and Comfortable Society
Contributing through Products, Technology and Services

Labor saving, safety improvement, and life cycle support through utilizing ICTElectronics Segment (Furukawa Denshi Co., Ltd.)

Sustainability of the Furukawa Company GroupRock Drill Machinery Segment (Furukawa Rock Drill Co., Ltd.)SDGs withHigh Level ofContribution

Message from Top Management

SDGs withHigh Level ofContribution

Solving Social Issues through BusinessGoing forward, our goal is to provide equipment that achieves a balance between meeting the needsof customers who are planning projects and resolving social issues. In response to the aging of society,we will also strive to provide suggestions for machinery that can reduce the labor of maintaining facilities.

Electrolytic copper is an essential material that is actively used in various industries, including the automotive industry, the construction industry
that engages in infrastructure improvement, and the information and communication industry. The Metals segment undertakes to ensure
a steady supply of this material. Sulfuric acid also has a wide range of applications, including paper
making, fertilizer, agrochemicals, food additives, tap water disinfection, pharmaceuticals, automobiles,
telecommunications, and so on, and it also supports the development of these industries.
Our subsidiary Oita Mining Co., Ltd. is producing and providing a stable supply of limestone
products. In addition to its use in construction as a raw material for cement and in concrete
aggregates, limestone is used in numerous fields that support the foundations of social infrastructure,such as iron and steel, agriculture, the chemical industry, purification materials, and so on. Goingforward, we will continue contributing to the creation of a convenient and comfortable society.

Group Overview

Metals Segment (Furukawa Metals & Resources Co., Ltd.)Management Philosophy / Sustainability Management

Industrial Machinery Segment (Furukawa Industrial Machinery Systems Co., Ltd.)The Industrial Machinery segment engages in measures to address aging infrastructure. In road facilities, we are involved in bridge
replacement and repair work. In terms of disaster control, including disaster prevention and mitigation, we are also providing crushers andbelt conveyor equipment for construction to raise embankments and so on as tsunami countermeasures.
As measures for control of flooding caused by climate change, we are providing equipment necessary for construction of dams, regulating
reservoirs, and other such facilities to control river water volume in urban areas. In addition, we are contributing to conservation of the water
environment by providing pumping plant equipment for sewage facilities as well as providing efficientmachinery for the purpose of reducing energy consumption and environmentally friendly machinery.

11

CONTENTS

Solving Social Issues through BusinessSustainability of the Furukawa Company GroupCONTENTS■ Contributing through Products, Technology and Services
pany Group are vital presences in some truly familiar places. The Group provides products, technology,
convenient and prosperous, and to protect the safety and security of society.

■ UNIC cranes
These truck-mounted cranes are used on
construction sites and the like.

■ Electrolytic copperThis substance is used in the wires, copper pipes,
and other components of household appliances,
communication devices, and automobiles.

■ Electrostatic precipitators
This equipment prevents air pollution
from plants and other facilities.

■ Pumping equipment at wastewater treatment facilities
We have a wealth of experience with thisequipment at wastewater treatment plants andwater treatment plants throughout Japan.

These machines crush rocks into smaller
pieces at quarry.

This equipment transports massive amounts ofearth and sand, ore, coal, and other raw materials.

■ Enclosed suspended conveyors■ Tunnel drill jumbos
These machines are used for the Linear Chuo
Shinkansen and other construction projects.

Sustainability Report 2022

These materials are used to counter the extra heatproduced by higher-performance electronic equipment.

■ Cuprous oxide
This eco-friendly substance is used tocoat the undersides of marine vessels.

■ Bridges and steel structures
We construct pedestrian bridges, motorways, and the like.

■ Coils
Filter coils are used to control noise fromelectric control units and power sources.

■ UNIC carriers
These are trucks that carry new cars anddamaged cars.

Sustainability Report 2022

14

Governance13■ AlN ceramics

Targets and Results for Fiscal 2022

This high-purity metal is used as a raw
material for mobile equipment and lasers.

These machines are used in oyster farming and unloading catches from vessels.

Society■ Ocean cranes

These machines are used to tear down
concrete and structural steelwork inbuilding demolition and the like.

Strengthening the Business Foundation with a View to Growth■ Hydraulic crushers

Environment

These conveyors are used to close off
and vertically transport materials.

Sustainability of the Furukawa Company Group■ Belt conveyors

These machines are used to break rocks
and crush concrete.

Contributing through Products, Technology and Services■ Hydraulic breakers

Message from Top Management■ Crushers

Outside Japan, these cranes are used on construction sites for skyscrapers and the like.

■ High-purity arsenic

These machines drill holes for blasting at
quarry and limestone mines.

Solving Social Issues through Business■ Mini crawler cranes■ Hydraulic crawler drills

Group Overview

and services that support us throughout the whole range of our everyday lives in order to make themManagement Philosophy / Sustainability Management

Taking a good look at our everyday life, we find that products and technology from the Furukawa Com-

Sustainability of the Furukawa Company GroupCONTENTS■ Strengthening the Business Foundation with a View to Growth:Comments from Responsible Sustainability Leaders

Masayuki Kuno

Quality Assurance Committee Chairperson,
Director and Managing Executive Officer,
General Manager, Technology Division

The Quality Assurance Committee guarantees the safety and security of all the products and services
produced by the Group and pursues a variety of initiatives to satisfy our customers. Our aim is for overseas
procurement, production at overseas works, and also export products, to provide assurance of the same
"Japanese quality" that we take pride in as Japanese manufacturers. In fiscal 2022, we reinforced our quality
patrols at each site while at the same time implementing bottom-up quality improvement activities through the Small Group Improvement
Activities onsite at the production sites. We have taken steps to improve our functionality for suppressing the occurrence of complaints
by having all the departments involved in DR*1 and SR*2 at the development and design stages take part in verification from multiple
perspectives. In the continuing issue of change point controls, the visualization of change points and sharing of information have contributed
to measures for alertness and prevention of occurrence. Since the establishment of Quality Assurance Departments at the Core BusinessCompanies that have manufacturing departments was completed in fiscal 2023, we will be reviewing the regulations intended to strengthen
the quality assurance systems at each site and deepen the coordination within the Group, thereby leading to more effective activities.

*2 SR: Safety Review. Reviews with emphasis on the aspects of safety during the use of newly developed products.

Risk Management Committee

Hiroyuki Sakai
Risk Management Committee Chairperson
Managing Director

We have declared "strengthen and expand our human resource bases" as one of the policies for achieving
Vision for 2025, and we are engaging in efforts focused on "cultivate human resources," "promote healthand productivity management," "promote diversity," and "improve workplace environments." In order toremain a corporation that is indispensable to society into the future, it will be necessary for the employees
themselves to undergo rapid change and growth in step with the changing times and even one step ahead of the times. We will be
flexible in adopting new structures that account for diversifying individuality, values, and living environments. By also realizing workplaceenvironments that make it easy to exercise superior creativity, we will support our employees' growth.

In the reorganization of December 1, 2021, the previous Risk Management Committee that had been part of
our CSR promotion framework was shut down and a new Risk Management Committee was established.
The purpose of the new Risk Management Committee is to conduct comprehensive deliberations onimportant matters relating to Enterprise risk management for the Furukawa Company Group. Specifically,
it deals with formulating basic policy; improving and strengthening frameworks; examining and evaluating potential risks; examining,
evaluating, and improving measures to address potential risks; examination of education, approaches, and methodology; research on laws,
regulations, and case examples; public information measures; and disclosure measures as they related to Enterprise risk management.
It conducts examination and deliberation of various matters relating to these and other aspects of risk management. It reports to theBoard of Directors not only on responses to natural disaster risks implemented to date, but also on risks, including human rights issues
and environmental risks, that could have a serious impact on Group management, thereby making the business foundation of the Groupstronger and more secure.

Purchasing Department

Naoki Ikeda
Associate Officer
General Manager, Purchasing Department

The Compliance Committee deliberates on important matters relating to compliance in the Group andpromotes compliance activities. In fiscal 2022, the Group conducted a compliance awareness survey. In
addition to checking the awareness of Group officers and employees regarding compliance, this enabled
us to grasp problem points in the Group and issues that need improvement, thereby providing footholds
toward our future work on formulating compliance-related measures. In addition, the Group is conducting compliance training for newly
hired employees as well as gradually creating training videos for other levels of personnel. In order to strengthen the business foundationof the Group and to contribute to increasing our corporate value, our aim is for all officers and employees to attain a level of complianceawareness that is acceptable in the international community.
Sustainability Report 2022

16

Governance

Sustainability Report 2022

Heightening Compliance Awareness among Officers and Employees, Strengthening
the Business Foundation, and Contributing to Improvement of Corporate Value

Targets and Results for Fiscal 2022

In fiscal 2022, the second CSR survey of the three Core Business Companies in the machinery businessand of approximately 100 suppliers of Furukawa Denshi Co., Ltd., was conducted. The result was toconfirm that everyone involved is aware of the Group’s guidelines and understands them. In fiscal 2023, weare scheduled to visit some of the suppliers that cooperated with us on the survey, engage in exchanges ofviews and so on, and establish close communication with them. We will also conduct a survey of approximately 40 suppliers of Furukawa
Chemicals Co., Ltd. and production subsidiaries in the machinery business. Going forward, we will advance a step beyond the promotionof CSR procurement conducted to date and transition to procurement activities that take human rights, the environment, and other suchaspects into consideration, and that are aware of sustainability. We will proceed to deepen our partnerships with suppliers for the purposeof our continuing mutual prosperity, and we will contribute to society throughout the supply chain.

Takeshi Miyajima
Compliance Committee Chairperson,
Senior Executive Officer, General Manager, Legal Department

Society

Further Deepening Partnerships with Suppliers on
Sustainability-Friendly Procurement Activities

Compliance Committee

Environment

Contributing to a More Robust Business Foundation through
Increasingly Diversified and Complex Risk Management

Strengthening the Business Foundation with a View to Growth

Realizing a Workplace Environment that Makes Work Satisfying
for Employees with Fair Performance Evaluations and Treatment

Contributing through Products, Technology and Services

Atsushi Takano
Senior Executive Officer,
General Manager, Human Resources &General Affairs Department*1 DR: Design Review. Third-party reviews of specifications and design specifications, programs, and other outputs from each phase ("Third-party" includes various
division, such as sales, accounting, purchasing, production management, quality assurance, etc.).

Sustainability of the Furukawa Company GroupThe Group is seeking to contribute to the realization of a sustainable society by introducing production facilities
and equipment with high energy-saving efficiency, through operations that are safe and efficient, and bysystematically and continuously promoting environment-saving activities that consider the impact on the global
environment and biodiversity. In fiscal 2022, the Environmental & Safety Management Committee implemented
the Environmental and Safety Audits and the Environment/Safety Promotion Meetings that had been postponed the previous fiscal year. In
order to ensure positive implementation of environmental conservation measures while adequately addressing COVID-19 pandemic, webconferencing was used to communicate with the field. As a response to the natural disasters that have been occurring frequently in recent
years, we are also systematically constructing mining pollution prevention facilities to enable their continued operation for a certain amount oftime even when mining pollution prevention facilities stop functioning due to natural disasters at suspended and abandoned mines in Japan.
As a measure to help advance biodiversity conservation and rehabilitation, the Group started a firefly rehabilitation project at the site of theformer Ashio Copper Mine (Ashio-machi, Nikko City, Tochigi Prefecture). Fireflies were observed flying for the first time in June 2022. Goingforward, we will continue ecosystem conservation and rehabilitation activities in cooperation with local residents and other parties. As tomeasures for carbon neutrality, the Group has begun discussions with a view to realization of this goal at Group production centers, and in
future the Group will be taking steps for visualization of activity results as well as accelerating our measures.

Message from Top Management

Assuring the Quality of All Products andServices in Order to Satisfy Our Customers

Solving Social Issues through Business

Taking Steps to Visualize Environmental and
Safety Activity Results and Accelerating Systematic, Continuous Measures

Human Resources & General Affairs Department

15

Tatsuki Nazuka

Quality Assurance Committee

Group Overview

Environmental & Safety Management Committee Chairperson
Executive Officer, General Manager, Environmental &Safety Management Department

Management Philosophy / Sustainability Management

Environmental & Safety Management Committee

Sustainability of the Furukawa Company GroupCONTENTS■ Targets and Results for Fiscal 2022★★★ Target achieved ★★ Target partially achieved ★ Target not achieved

Organizations

Targets for Fiscal 2022

① Strengthening reduction target control based on the Fourth Medium-Term Reduction Targets② Analyzing monthly data to promote preventive measures③ Reducing volumes of chemical substances handled (1% reduction from the previous fiscal year)① Promoting training for improving understanding of relevant laws and regulations② Promoting education for improving knowledge and skills for executing various types of work

Environmental &Safety Management Committee

3. Enhancing preventive measures for zero accidents and zero disasters① Strengthening facility and equipment inspections and promoting making proper work procedures manuals② Intensifying safety activities to eliminate unsafe conditions and behaviors③ Promoting training to help improve sensitivity to danger④ Strengthening risk assessment implementation to reduce industrial accident rates (Target: Severity rate of 0.03 or lower)① Strengthening efforts to reduce the impact of risks from business activities on eco-systems② Promoting ecosystem conservation activities by continuous greening activities, moun-tain and forest management, etc.

Quality Assurance Committee★★★

3. Promoting biodiversity protection activities① Promoting environmental protection activities by continuous greening activities,
mountain and forest management, etc.
② Promoting ecosystem restoration activities on company-owned property, former
mine sites, etc.

◦ Identified work that is hazardous to assure safety.
◦ Implemented employee training to upgrade their knowledge and skills.
◦ Carried out construction of various kinds at Ashio Mine and Kune Mine to increase the resilience ofmine wastewater treatment facilities during heavy rainfall disasters.

★★★

1. Improving on-site strengths by passing on knowledge and skills
2. Maintaining and managing mine wastewater treatment facilities
3. Improving final disposal sites and adits◦ Reduction target was not achieved.

2. Improving product safety◦ Introduced the latest technology in some areas of methodology for safety guidance and training.

★★★

3. Strengthening quality assurance frameworks◦ Carried out reviews of the organizational frameworks at every Core Business Company.

★★

3. Monitoring and continuously improving quality assurance systems

1. Cultivating human resources◦ Implemented new initiatives for population formation and follow-up of provisional hires in new graduate
recruitment activities.
◦ Target numbers of personnel in specific fields were not achieved.
◦ Conducted fundamental review and revision of the educational system.

★★

1．Cultivating human resources◦ Satisfying the necessary personnel◦ Strengthening recruitment activities◦ Implementing new education system

2. Promoting health and productivity management◦ Reduced overtime work and achieved target total actual working hours of under 2,000 hours.
◦ Strengthened health-related education and, for those with health-checkup results suggesting follow-up
checks, encouragement to be reexamined.

★★★

2．Promoting health and productivity management◦ Reducing annual total working hours◦ Promoting health management and reducing health risks

3. Promoting diversity◦ Concentrated hiring activities produced increase in hires of those with disabilities.
◦ Formulated framework for new establishment of system to promote participation by the elderly.

★★★

3. Promoting diversity◦ Increasing the percentage of women in management◦ Increasing the employment rate of people with disabilities◦ Promoting active participation by elderly people

4. Improving work environments◦ Introduced free address system in offices. Improvement of telecommunications infrastructure is an
issue.

★★

4. Improving work environments◦ Coordinating and developing productive work environments

1. Launching the second CSR survey for major suppliers◦ Responses of 101 main companies have been 100% collected and analyzed.

★★★

1. Conducting second CSR survey of major suppliers at other sites and conducting follow-up

2. Enhancing management of major suppliers (QCD + CSR)

◦ Conversion of supplier evaluations into data is underway.

★★

2. Enhancing management of major suppliers (QCD + Sustainability)

3. Fostering partnerships with suppliers◦ Establish close communication during visits and web meetings.

★★★

3. Fostering partnerships with suppliers

4. Continuing Group-wide CSR-oriented procurement activities◦ Conducted training of management in Purchasing Departments of the three machinery plants.

★★★

4. Initiating activities promoting procurement that is cognizant of company-wide sustainability

1. Creating list of risks (implementing identification of risks)◦ Instructed Group companies and corporate departments to create lists of risks.

★★

1. Initiating risk list operations

2. Conducting analysis and evaluation of risks◦ Instructed Group companies and corporate departments to create lists of risks that will serve as foundation material for the analysis and evaluation of risks.

★★

2. Identifying, investigating, and evaluating significant risks and reporting them to the Board of Directors

3. Conducting evaluation of measures to address risks◦ Instructed Group companies and corporate departments to create lists of risks that will serve as foundation material for conducting evaluation of measures to address risks.

★★

3. Establishing framework for management of environmental risks★

1. Reducing the number/cost of complaints (continued)
2. Improving product safety (continued)◦ Studied material collection and draft creation methods to use in creating a conventionally formatted risk proposal.

★★★

4. Establishing framework for management of human rights risks◦ Reviewed framework for compliance training and converted part of the training into video.

★★

1. Conducting compliance training by video

2. Conducting compliance awareness survey◦ Conducted compliance awareness survey to gain a grasp of Group problems and issues that should be improved.

★★★

2. Implementing measures based on results of compliance awareness survey

3. Revising internal reporting system in response to amendments to the Whistleblower Protection Act◦Dealt with amendments to law by revising the internal reporting system and maintaining the system framework.

★★★

3. Revising compliance manuals and guidelines

4. Establishing framework for compliance with the Act on the Protection of Personal Information, etc.

◦ Implemented creation and publication of Privacy Policy at Group companies.

★★★

4. Implementing measures for awareness of the internal reporting system

Sustainability Report 2022

18

Governance

4. Creating a risk proposal for inclusion in the annual securities report
1. Upgrading and expanding compliance training (continued)

Society

Sustainability Report 2022

◦ Held discussions with forest owners’ cooperatives and other parties regarding future mountain andforest management plans.
◦ In addition to fireflies restoration activities at Kune Mine, initiated new firefly rehabilitation activities at
the Ashio Office. Continued other plants and animals restoration activities.

Targets and Results for Fiscal 2022

Governance17★

1. Reducing the number/cost of complaints

Risk Management Committee

Compliance Committee◦At Environment/Safety Promotion Meetings (Safety Meetings), provided guidance for zero accidents andzero disasters.
◦ The numbers of both environmental/facility accidents and of industrial accidents increased.
◦ With regard to reducing the rate of industrial accidents, the target was not met as the severity rate was
0.05.
◦ Conducted on-site inspections and web conferences for sites where accidents or disasters occurred.

2. Enhancing preventive measures for zero accidents and zero disasters*Aiming for continuous severity rate of 0.03 or lower.
① Strengthening safety measures by making use of environmental and safety audits② Strengthening safety management activities by providing guidance and education based on the work style of each of the Group companies③ Strengthening training to improve hazards sensitivity as well as safety training
for managers and supervisors

Environment

Purchasing Department★★★

Strengthening the Business Foundation with a View to GrowthSociety

Human Resources &General Affairs Department

1. Improving on-site strengths by passing on knowledge and skills
2. Maintaining and managing mine wastewater treatment facilities
3. Improving final disposal sites and adits◦ Made use of all types of check sheets during environmental and safety audits to implement confirmation and guidance regarding the status of initiatives at each site.
◦ At Environment/Safety Promotion Meetings (Environment Meetings), provided guidance on environmental laws and regulations and on how to read data and other such matters.

Contributing through Products, Technology and Services

Managementof suspended /abandoned mines★★

1. Promoting continuous improvement of environmental performance (CO2, water, waste, chemical substances)① Strengthening management of progress toward the Fourth Medium-Term Reduction Targets② Promoting activities for achievement of carbon neutrality③ Promoting activities for reduction of harmful chemical substances (switching toalternative substances)④ Promoting education that contributes to environmental conservation activities

Sustainability of the Furukawa Company Group

4. Promoting biodiversity protection activities◦ At Environment/Safety Promotion Meetings (Environment Meetings), conducted discussions with those
responsible for each site about achieving targets.
◦ With regard to water resource usage, some sites fell short of meeting initial targets, resulting in theoverall target not being met.
◦ Due to increased production at each site, the volume of chemical substances handled has increased
year-on-year.

Solving Social Issues through Business

Environment

Environmentand safety③ Promoting analysis and utilization of various types of measurement data

Targets for Fiscal 2023

Message from Top Management

2. Promoting training/guidance for improving on-site strengths

Evaluation

Group Overview

1. Promoting continuous improvement of environmental performance(CO2, water, waste, chemical substances)

Results

Management Philosophy / Sustainability Management

ESG

Environment

Main Related
SDGs

Reducing environmental impact
Ensuring the environment and safety
Promoting biodiversity protectionImprovement of environmental performance(CO2, water, waste, chemical substances)
Zero accidents and zero disasters
Restoration and recovery of the ecosystem

Environmental & Safety
Management Committee

Furukawa
Co., Ltd.

Environment/Safety Promotion
Meetings (Environment Meetings,
Safety Meetings)

Environmental &Safety Management
Department(Secretariat)

Furukawa Industrial Machinery Furukawa Metals &Resources Co., Ltd.
Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd. Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.
Furukawa UINC Corporation[Environment/Safety promotion meetings (environment meetings, safety meetings)]
Attended by:Environmental & Safety Management Department general manager
and employees, employees with environment and safety
responsibilities of Core Business Companies and other divisions
Secretariat:
Environmental & Safety Management Department

Inside Honzan adit at Ashio OfficeEnvironment Meetings
The Environment/Safety Promotion Meetings (Environment
Meetings) were held in November 2021 at our Ashio Office. During
the meeting, the substance of amendments to environmental
laws and regulations was shared, a report was given on thestatus of progress toward achieving the Fourth Medium-Term

2%

0.6%

20.0%

Water resources used

2%

0.6%

−6.2%

Total emissions
including waste, etc.

3%

0.9%

8.5%

* Targets for reduction relative to predicted fiscal 2029 environmental
performance values

ISO 14001 Certification Status
The Group's primary business sites have completed theacquisition of ISO 14001 certification, the international
certification standard for environmental management systems.

ISO 14001 Certification Status

Environmental Accounting
The Group uses the Environmental Accounting Guidelines from
the Ministry of the Environment as a reference in understanding
costs. We are endeavoring to better protect the environment andimprove our environmental efficiency.

F urukawa Company Group ESG Data 2022, Environmental Data
Sustainability Report 2022

20

Governance[Environmental & Safety Management Committee]
Committee Chairperson: General Manager, Environmental & Safety Management Department
Members:
General managers of each division, Core Business Companies’
works general managers (or general managers of administration if
there is no general manager of works)
Secretariat:
Environmental & Safety Management Department
Meeting location:
Head Office, Furukawa Co., Ltd.
Meeting frequency:
Once a year

The Environment/Safety Promotion Meetings (Safety Meetings) were
held in October 2021 at the Ashio Office of Furukawa Co., Ltd. At
the meetings, tests to verify safety awareness were conducted andguidance was given on risk assessment implementation methods andother such matters by meansof exercises. Accidents
and disasters that occurred
recently within the Group
were used as examples andfurther methods to prevent
recurrence were discussed.
Active discussion of these
Environment/Safety Promotion
and other matters took place.
Meetings (Safety Meetings)

Reduction rate results

CO2 emissions

SocietyCore BusinessCompanies

Safety Meetings

Reporting

Fiscal 2022 (The 3rd Year)

Environment

Guidance/Instruction

Fiscal 2029

Reduction rate targets* Reduction rate targets

Sustainability of the Furukawa Company Group

Sustainability Report 2022

Sustainability Promotion Meeting he Fourth Medium-Term Reduction Targets andT
Results of the Third Year

Consideration for the Ecosystem

The key matters relating to the Group's protection of theenvironment and management of occupational safety andhealth are drafted and deliberated in the Environmental &Safety Management Committee, whose members include
top management from each of our production centers. The
committee session held in April 2022 was convened on the web,following the practice of the previous fiscal year, as a measureagainst COVID-19 pandemic. At the opening of the session, thePresident spoke about promoting business activities that areconsiderate of the environment and pursuing active initiatives forcarbon neutrality. He also observed that the number of accidents
and disasters in fiscal 2022 had increased over the previous
fiscal year. In this light, he gave instructions to promote initiatives
to eradicate accidents and disasters. There was then a report on
key environmental and safety activities in fiscal 2022, followed byPresident & Representative Director

The Environment/Safety Promotion Meetings were formerly held
annually with the participation of Group staff in charge of environmental
and safety matters. The purpose was to take steps to improve
environmental protection and occupational safety and health activities
at every production center. Since fiscal 2020, however, sessions havebeen divided into Environment Meetings and Safety Meetings as ameasure for development of the staff in charge of environmental andsafety matters and to further raise the level of activities at each site.

Promoting Resource Circulation/Preventing Pollution

Environmental & Safety Management
Committee

Environment and Safety Promotion Framework Chart

Environment/Safety Promotion Meetings

The Fourth Medium-Term Reduction Targets, which cover fiscal
2020 to fiscal 2029, deal with the predicted upcoming increases
in environmental performance figures (CO2 emissions, volume
of water resources used, and total emissions volume, including
waste and so on) due to the production plan based on Vision for2025. Following discussion with every Core Business Company,
targets were set that reduce environmental performance inCO2 emissions by 2%, in water resources used by 2%, andin total emissions volume, including waste and so on, by 3%,
respectively, relative to fiscal 2029.
The third-year results with respect to the Fourth MediumTerm Reduction Targets showed that reduction targets wereachieved for CO2 emissions volume and total emissions volume,
including waste and so on. However, some sites did not achieve
the initial target values for water resources used, and as a result,
we also fell short on the overall target.
As fiscal 2023 brings the final year of the Fourth MediumTerm Reduction Targets, we will work to gain a precise grasp of
the status of progress at each site and carry on with measures toachieve our reduction targets.

Responding to Climate Change asic Environmental Management Principle &B
Environmental Conservation Activity Policies

Environmental & Safety Management Committee

Corporation

The Fourth Medium-Term Reduction
Targets and Results of the Third Year

Environmental Efforts

The Furukawa Company Group is seeking to contribute to therealization of a sustainable society by acting in accordance with
the Charter of Corporate Conduct and the Basic Environmental
Management Principle to engage in business activities that areconsiderate of decarbonization and other environmental concerns.
The Group will tie this initiative in with new business opportunities.
Regarding measures to counter global warming, we will
promote activities in line with our Fourth Medium-Term Reduction
Targets, which are based on Vision for 2025 and cover the 10
years from fiscal 2020. We have also begun initiatives towardrealization of carbon neutrality.
In implementing environmental conservation activities, wetake preventive measures, take steps to increase our resilienceagainst natural disasters, and engage in other such actions toimprove and reinforce our capabilities for dealing with risk.
In addition to promoting initiatives to reduce the negative
impact that our business activities have on the ecosystem,
we are also engaging in continuous greening activities, sounddevelopment of mountains and forests, and so on. We arecommitted to pursuing systematic promotion of activities toprotect and restore the natural environment and ecosystems.

discussion of the status of progress toward Fourth Medium-Term
Reduction Targets, future trends, the circumstances of accident
and disaster occurrence, and prevention of recurrence. In orderto reduce accidents and disasters in fiscal 2023, it was decided toconcentrate measures on the three points of training to improve
hazards sensitivity, making use of near-misses, and strengthening
inspection rounds (workplace patrols). There was also a briefing
by the Environmental & Safety Management Department about
the initiation of specific measures toward realizing carbon
neutrality, with the Sustainability Promotion Department as thedepartment
incharge and theEnvironmental&
Safety Management
Department as theimplementing force.

(Safety Meetings)

Message from Top Management

The Furukawa Company Group’s Approach

The Group is taking steps to heighten the quality of activities forenvironmental protection and occupational safety and health at
every site. We are promoting the shift from correction to preventive
measures and supporting initiatives to eliminate accidents anddisasters at each of our work sites. In order to improve our onsite capabilities, we are conducting environmental and safety
audits from May to June every year. In fiscal 2022, we shortened
the implementation period in consideration of the status of
COVID-19 pandemic. In fiscal 2023, our environmental efforts
included management of progress in reduction for environmental
performance (CO2 emissions, volume of water resources used,
and total emissions volume, including waste and so on) based on
the Fourth Medium-Term Reduction Targets. We also confirmed
the status of monitoring and measurement of standard values
prescribed by environmental laws and regulations. Our safety
efforts included training to improve hazards sensitivity, the active
use of near-miss reports, strengthening inspection rounds, andso on. We also confirmed
the status of these andother initiatives, the analysis
of causal factors and similar
aspects of the accidents
and disasters that occurred,
and the status of initiatives
to prevent recurrence.
Sakura Works of Furukawa UNIC

Reduction Targets, and a test of understanding of environmental
laws and regulations was administered. Methods for responding
when an environmental
accident occurred werealso reconfirmed.
The initiative to realize
carbon neutrality by 2050 was
discussed, and it was decided
to initiate concrete action in
the current fiscal year.
Environment/Safety Promotion Meetings

Group Overview

Social Issues (Background)

Basic Approach

19

Environmental and Safety Audits

CONTENTS

Environmental Efforts

Environment
揮発油
揮発油（ガソリン）（ガソリン）

CO 2

上水道

OIL

CO 2
CO 2

上水道
上水道

OI L
OI L

ガソリン
ガソリン

ガソリン

OI L
OI L (Fiscal 2022)
Material FlowOILof the Furukawa Company Group
灯油
灯油

灯油
灯油

排水量

工業用水

灯油

工業用水
工業用水

排水量
排水量

地下水
地下水

廃棄物等
廃棄物等
総排出量
総排出量

灯油

軽油

OIL
軽油

Category
Ａ重油

Total energy
consumption

OIL
OIL

ガソリン
ガソリン

灯油
灯油

OIL
OIL
灯油

都市ガス

灯油

軽油
軽油

OIL
OIL
軽油

Scope
2

電気

軽油

揮発油
（ガソリン）

灯油

ガソリン

OI L
灯油

軽油

OI L
軽油

地下水

210 kℓ

40,614
Electricity OILthousand
kWh

液化石油
廃棄物等
廃棄物等
液化石油
ガス
（LPG）
総排出量
総排出量
ガス
（LPG）
上水道

地下水
地下水

軽油
排水量

ガソリン

Volume used
Ａ重油
排水量
Ａ重油
排水量
in FY2022

軽油

灯油

OIL
OIL
軽油

工業用水

OIL

電気
電気

地下水

INPUT

地下水
地下水

600

483

511

工業用水

Industrial
water

排水量

521
thousand m3

排水量
軽油

0
3
Groundwater thousand m
廃棄物等
総排出量

地下水

OI L
軽油

液化石油
ガス
（LPG）

都市ガス

2018

2019

2020

427

472

電気

30

Scope126

2021

2022 (FY)

Total

22,104 t-CO2

Due to factors including the consumption of energy by humanbeings since the Industrial Revolution, the concentration ofgreenhouse gases in the atmosphere has risen and global
warming is progressing rapidly. The Group recognizes therisks and opportunities due to climate change as an importantmanagement issue, and we have been taking measures to reduce
emissions of CO2 and other greenhouse gases. In addition,
we are presently going forward with preparations to disclose
information based on the framework of TCFD recommendations(including equivalent frameworks).
The physical risks accompanying climate change are
predicted to grow greater. In light of the government targets
for "46% reduction in CO2 emissions by fiscal 2031 relative tofiscal 2014" and "achievement of carbon neutrality by 2050," itappears that the risks and opportunities involved in the comingtransition to a low-carbon economy will grow even greater. In
order for the Group to realize sustainable growth even amidchanges like these, we consider it necessary to grasp therisks and opportunities and go on strengthening our initiatives

Wastewater
volume417 thousand m3

Total emissions
includingwaste, etc.

6,347 t

22

21

4

0

2018

There was an increase of 6% year on year due to a
year-on-year increase of 11% in energy usage andthe influence of the CO2 emissions factor.

22

21

17

17

18

5

5

4

2019

2020

2021

2022 (FY)

477

477

474

417

2019

2020

2021

2022 (FY)4

Wastewater volume(thousand m3)

800
600
400

410

Water resource usage decreased 8% year on year.
This had the effect of reducing wastewater volume
12% year on year.

680

671

618

2018

Valuables(t)

TOPICS

2020

2021

2022 (FY)

Making Use of Small-Scale Hydropower

4,000
2,000
0

6,884
3,956

Waste

7,160

7,039

3,803

3,836

5,912
3,456

6,347
3,302

2,928

3,357

3,203

2,456

3,045

2018

2019

2020

2021

2022

(FY)

We promoted suppression of waste generation,
recycling, and other such measures. At the sametime, however, production increases at each works
caused total emissions including waste to rise
7% year on year. Of the total amount of waste
generated, 48% was valuable resources.

List of Our products Giving consideration
to Humans and the Environment

Small-scale hydropower generator (interior of Nakasai Water Treatment Plant at our Ashio Office)Sustainability Report 2022

22

Governance ist of Our products Giving consideration toL
Humans and the Environment

Society

The Group is actively
undertaking initiatives todevelop and popularize
environmentallyconscious productswith considerationfor environmental
conservation and carbon
neutrality to contributeto the realization of asustainable society.

Consideration for the Ecosystem

The Group sets values for voluntary control standards at each
works. Periodic measurements are made of the quality ofwater discharged by the works, the gas emissions, noise, andvibrations from each type of equipment, and so on. Trend values
are then analyzed and we proactively endeavor to refrain fromexceeding the control standard values.
The environmental conservation activities at each works
are checked annually in the environmental and safety audits
conducted by the Environmental & Safety Management
Department. By these and other means, we are providing
guidance to prevent infringement of statutory controls.
No cases of violation of environmental laws and regulations
occurred throughout fiscal 2022.

TOPICS

Promoting Resource Circulation/Preventing Pollution

Status of Compliance withEnvironmental Laws and Regulations

EnvironmentFurukawa Company Group ESG Data 2022, Environmental Data

As part of the activities our Ashio Office conducts toward realization ofcarbon neutrality, we have installed a small-scale hydropower generator in
the sluiceway of the Nakasai Water Treatment Plant. The Nakasai Water
Treatment Plant processes acidic wastewater from the Ashio Copper Mine's
adits and final disposal sites that contains heavy metals and other such
substances. The mine wastewater volume is strongly influenced by heavy
rains, typhoons, and other such natural phenomena, so the treatment plantis kept operating on a 24-hour, 365-day basis in order to assure safety.
The electricity produced by the small-scale hydropower generator thathas been installed there is used to power the electric lights for night-timeinspection work at the Nakasai Water Treatment Plant.

Responding to Climate Change

6,000

Sustainability Report 2022

The Group has been taking steps toward the achievement ofcarbon neutrality since fiscal 2022.
Specifically, the plan for Group production centers tofollow in moving toward achievement of the government
targets mentioned above calls for us to introduce equipment
and devices for the purpose of decarbonization, to propose
optimal production processes, to study the future schedule formoving toward decarbonization, and to implement practical CO2
reduction measures.

Total emissions including waste, etc.
8,000

We promoted increased efficiency in use of water resources,
reuse, increased efficiency in production processes, andother such measures. We also took measures against waterleakage at some sites. As a result, we achieved a year-onyear reduction of 8%.

21

Initiative to Realize Carbon Neutrality

200

200
2019

17,808 t-CO2

Scope2

22

10

400

2018

Scope
2

addressing climate change. To that end, we are scheduled tocreate a roadmap of how the Group will proceed toward carbon
neutrality until fiscal 2026. As we proceed toward realization ofa carbon-free society, we consider it the social mission of theGroup to make every effort to provide products, technology,
and services that are highly effective in reducing emissions ofgreenhouse gases, and to reduce the emissions of greenhousegases that are associated with our business activities.

Environmental Efforts

692

26

20

0
623

Awareness of Climate Changes

OUTPUT(thousand t-CO2)

都市ガス

438

4,296 t-CO2

廃棄物等
Ａ重油
総排出量

(thousand m3)

0

OI L

CO 2

Scope
1

CO2 emissions

Total water withdrawal

600

電気
電気

906
thousand m3

City gas

灯油

液化石油
ガス
（LPG）

We endeavored to reduce energy use by introducing "toprunner" equipment and machinery at each works, increasing
the efficiency of production processes, and other suchmeasures. At the same time, however, production increases
at each works resulted in a year-on-year increase of 11%.

800

ガソリン

CO2

Responding to Climate Change

Sustainability of the Furukawa Company Group

0

上水道

2
CO 灯油

Ａ重油
廃棄物等
総排出量

電気

200

電気

OI L

345 t

40

400
都市ガス

33 kℓ

揮発油
（ガソリン）

800
液化石油
ガス
（LPG）

都市ガス
都市ガス

Fuel oil A

電気
電気(thousand GJ)

Liquefied
petroleum gas(LPG)

210 kℓDiesel oil

OUTPUT

Volume usedin FY2022

Type

液化石油
廃棄物等
液化石油
ガス
（LPG）
廃棄物等
総排出量
ガス
（LPG）
総排出量

都市ガス
都市ガス

軽油

Energy consumption
Ａ重油

Kerosene

灯油

工業用水
都市ガス
都市ガス

Ａ重油
排水量
排水量
Ａ重油

2
CO灯油

液化石油
液化石油
ガス
（LPG）
ガス
（LPG）

工業用水
Type
工業用水

軽油

97
Clean waterOIL
thousand m3

上水道

OIL
OIL
灯油

OI L
OI
軽油 L

Message from Top Management

Ａ重油
Ａ重油

Total water
OI L
withdrawal

2
CO 軽油
2
CO
軽油

工業用水
工業用水

揮発油
（ガソリン）

軽油
CO 2
2
CO 軽油

ガソリン

32 kℓ

上水道
上水道

上水道
上水道

Group Overview

揮発油
揮発油（ガソリン）（ガソリン）
液化石油
ガス
（LPG）

V olatile oil(gasoline)

OIL
OIL
ガソリン

INPUT

Volume used
灯油
灯油
in FY2022

Type

Scope
1

揮発油
揮発油
（ガソリン）（ガソリン）
廃棄物等
総排出量

地下水

CONTENTS

揮発油（ガソリン）

Main Related
SDGs

Environment

Main Related
SDGs

Approach and Initiatives for Waste
Reduction and Resource Circulation

Awareness and Initiatives for Water
Resources and Water Pollution Prevention

Approach to Biodiversity

Based on the Fourth Medium-Term Reduction Targets, theFurukawa Company Group has set a target for total emissions
including waste, etc. that calls for a 3% reduction from the volume
of waste predicted for fiscal 2029. We are engaged in promoting
recycling and suppression of waste generation. Activities for waste
reduction and resource circulation cover the entire product life cyclefrom design to manufacturing and disposal. Specifically, we arecarrying out product development that considers yield improvement
at the design stage, yield improvement during steel cutting at the
manufacturing stage, reduction of paint scraps due to improved
coating efficiency, simplification of packaging of all kinds, promotionof reusable shipping cartons during parts delivery, and so on.
In addition, the Act on the Promotion of Resource Circulation
for Plastics was enacted in April 2022, and based on this law, we
will conduct surveys to more accurately ascertain the emissions
status within the Group of industrial waste and other such refuse
from products using plastic. Based on the results, we will takesteps to further reduce this kind of waste. The rate at which waste
in the Group is disposed of as landfill has generally remained ataround 10% over the past several years, with the rate of waste
disposal as landfill for fiscal 2022 at 7.4%.

Based on the Fourth Medium-Term Reduction Targets, the Group
has set a target for volume of water resources used that is 2%
less than the expected usage volume in fiscal 2029. We are taking
measures to promote improved efficiency of water resource usage
and reuse of water. When water leaks occur because of aging
underground pipes, we are making every effort at prompt detection.
We also make comprehensive use of oil and water separation
tanks for everyday control so that the oil contained in sewage
discharged by the works and oils and fats contained in rainwaterdrainage will not be discharged externally where they could
cause water pollution.

2019

80

2020

67

2021

61

2022

(FY)

 urukawa Company Group ESG Data 2022,
F
Environmental Data

Cancelation of the Ashio Cherry Tree-Planting Drive
and Furukawa-no-mori Tree-Planting Drive
The Ashio Cherry Tree-Planting Drive has been aiming to plant
1,000 cherry saplings on company-owned land in Ashio-machi,
Nikko City, Tochigi Prefecture, while the Furukawa-no-Mori

TOPICSThe Great Japanese Horse Chestnut
Tree in the Onuma Mountain Forest
In the Onuma Mountain Forest (within company-owned land) in Toyonemura, Kitashitara-gun, Aichi Prefecture, there is an enormous Japanese horsechestnut tree (root circumference 15.3 m; diameter at breast height 7.48 m;
diameter at eye level 7.45 m; height 32.5 m; branch length 46 m; estimatedage several centuries) that we have been carefully safeguarding for many
years. This tree has been an object of local worship as a sacred tree inhabitedby the protector god of the mountain. One of the largest trees in Japan, it has
a powerful presence that overwhelms the Japanese cedars around it.
It flowers every year from May to June, andthe horse chestnuts it bears are transformed
into horse chestnut rice cakes and other sweets
with the help of local residents.
In April 2008, the tree was designateda natural monument of Toyone-mura, Aichi
Prefecture, and in July 2022, it was newly
selected to be a designated cultural property
Great Japanese horse(natural monument) of Aichi Prefecture. The
chestnut tree in the
Company will continue its ongoing activities
Onuma Mountain Forest
to protect the tree with great care.
Sustainability Report 2022

24

Governance

Cationic electrodeposition coating equipment(Sakura Works of Furukawa UNIC Corporation)

for certifying appropriate forestry management.
*2 Forest Management (FM) certification is one of the FSC certifications.

Society

PRTR Substance Release and Transfer Volumes*1 The Forest Stewardship Council (FSC) operates an international system

Environment

2018

95

Fireflies are organisms that reflect that state of the environment, with
their presence considered a sign of a healthy water environment.
Out of a desire to restore an environment that provides those
fireflies with a sustainable habitat that can be passed on to the next
generation, our Environmental & Safety Management Department
has engaged in a continuing rehabilitation project for the genji-botaru
firefly (Luciola cruciata) at the site of the former Kune Mine (in Tenryu
Ward, Hamamatsu City, Shizuoka Prefecture), where these fireflies
are said to have swarmed. As a result, it has become possible toview the fireflies in flight every year from late June to early July.
In fiscal 2022, a firefly rehabilitation project was started oncompany-owned property at the site of the former Ashio Copper
Mine (in Ashio-machi, Nikko City, Tochigi Prefecture). Utilizing
the concept of the biotope (a biological habitat), the channel
revetments have been protected with gabions and plantedwith Japanese alder and willow trees that thrive near water, torecreate an environment favored by fireflies.
In fiscal 2023, a newly created firefly pond was stocked with
Semisulcospira freshwater snails to serve as a food source. Once it was
confirmed that the water snails had
established themselves, the pond
was stocked with approximately
400 larvae of genji-botaru fireflies(Luciola cruciata) and heikebotaru fireflies (Aquatica lateralis).
Light-trails of fireflies
In late June, fireflies were seenswarming around the biotope
flying there, and visitors happily(On company-owned property,
Ashio-machi, Nikko City)
watched the fireflies flying about.

Message from Top Management

Sustainability Report 2022

110

Firefly Rehabilitation Project at the Sites of the Former Kune
Mine and the Former Ashio Copper Mine

Group Overview

23

Hazardous Substance Storage Locker(Iwaki Works of Furukawa Denshi
Co., Ltd.)

(t)

120
100
80
60
40
20
0

Promoting Biodiversity Protection Activities

Consideration for the Ecosystem

Wearing protective equipment(Osaka Works of Furukawa
Chemicals Co., Ltd.) OC emissions volumes over time (Sakura
V
Works of Furukawa UNIC Corporation)

The Matsuki Valley

Mountain forestland owned by the Company, totaling approximately
2,200 hectares nationwide, contributes to CO2 absorption, protectionof biodiversity, securing water resources, and so on.
We carry out mountain and forest management in collaboration
with local forest owners’ cooperatives, systematically thinning,
clearing undergrowth, trimming branches, and so on, for thesound development of the mountain forestland. At the Kune
Forest in Tenryu-ku, Hamamatsu City, Shizuoka Prefecture, theFSC*1 has awarded us Forest Management*2 (FM) certification.
We have also collaborated with the local forest owners’
cooperative on the Onuma
Mountain Forest in Toyone-mura,
Kitashitara-gun, Aichi Prefecture.
Based on site surveys conducted
over three years, we reorganized
the forestry sections within thisOnuma Mountain Forest (Toyone-mura,
Kitashitara-gun, Aichi Prefecture)
forestland. New management
plans were formulated that have scheduled the thinning andother activities in the Onuma Mountain Forest for the 55-year
period from fiscal 2022 to fiscal 2076, during which we willcontinue to implement sound mountain and forest development.

Promoting Resource Circulation/Preventing Pollution*1 PRTR: Pollutant Release and Transfer Register

Biodiversity Action Guidelines

In fiscal 2019, the Sakura Works of Furukawa UNIC
Corporation introduced cationic electrodeposition
coating equipment, making it possible to switch towater soluble coatings that do not contain any volatileorganic compounds (VOC) for coating some products.
As a result, we successfully achieved a significant
reduction in annual VOC emissions, which went from
110 tons (in fiscal 2018), before the new equipment was
introduced, to 61 tons (in fiscal 2022), a 45% reduction.

Continuous Mountain and Forest Management(Regarding Company-Owned Mountain Forestland)

Responding to Climate Change

The Environmental & Safety Activity Targets created annually by
the Group includes targets for reduction in the amount of harmful
chemical substances handled. The aim for fiscal 2022 was a 1%
reduction year on year, but with production increases, the result
was a 6.5% increase. In fiscal 2023, we are aiming to achieve
reductions by improving coating efficiency and promoting the useof alternative substances that are not covered by the PRTR*1.
Group companies Furukawa Denshi Co., Ltd. and Furukawa
Chemicals Co., Ltd. use large amounts of poisonous materials
as raw material for products. According to chemical substancecontrol regulations, appropriate protective equipment is to beworn when handling these materials, they are to be stored underlock and key, transfers in and out are to be logged, and so on.
We are making every effort to give employees comprehensive
training in these matters so that we prevent accidents involving
chemical substances and operate in safety.

Initiatives to Reduce VOC* Tochigi Furukawa Association: An assembly of Furukawa Group companies in Tochigi Prefecture

Environmental Efforts

Approach and Initiatives forManagement of Chemical Substances

TOPICS

Based on the Biodiversity Action Guidelines established in 2012,
the Group has been promoting activities for the preservation andrestoration of biodiversity. These include continuous greening
activities and sound development of mountains and forests.
Rather than using introduced species, we select native
species of local origin for our greening activities.
In the Matsuki Valley (Ashio-machi, Nikko City, Tochigi Prefecture),
the formerly abundant nature is coming back. The ecological pyramidwith birds of prey, is being reshaped. The Ashio area, which includes
the Matsuki Valley, is inhabited by large wild animals such as Asian
black bears and species designated as special natural monuments
such as the serow, sika deer, Japanese macaque, foxes, and others.
Going forward, we will carry on with greening efforts not onlyin the Ashio area, but at company-owned properties throughout
Japan, furthering activities for the
restoration and recovery of abundant
ecosystems.

Tree-Planting Drive (organized by the Tochigi
Furukawa Association*) has been planting
trees on company-owned land in the Matsuki
area of Ashio-machi. These greening activities
are unique to the Group, and both drives havebeen canceled for three years since 2020 as ameasure against COVID-19 pandemic. Goingforward, however, these greening activities Cherry trees planted in the
9th Drive (March 2018)
will be continuing.

Sustainability of the Furukawa Company Group

Consideration for the Ecosystem

CONTENTS

Promoting Resource Circulation/Preventing Pollution

Society

Main Related
SDGs

Sustainability Promotion Meeting
Guidance/instruction

Reporting

Sustainability
Promotion Department(Secretariat)

Furukawa Co., Ltd.

Core Business Companies, etc.

Furukawa Industrial Machinery
Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa UNIC Corporation

Furukawa Metals & Resources
Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.
Yamaishi Metal Co., Ltd.

Sustainability Report 2022

Information from complaints

Core Business Companies, etc.

Competent authority
Affiliated groups
Recall applications, etc.

Public announcement

Reporting

Reporting

Furukawa Co., Ltd.

Response/address
the market

Sales departments, service
departments

Quality Assurance
departments

Investigation of causes/ consideration ofcountermeasures

Design and development
departments, manufacturing
departments, etc.

Interaction

Designation asserious quality
accident(s)Interaction

Corporate Planning Department /Public & Investor Relations Section

President &Representative Director

Instruction

Quality AssuranceCommittee
Quality Assurance Management Department

Sustainability Report 2022

26

GovernanceMaterials Sectional Meeting

Customers/market

according to laws and regulations, disclose information tocustomers through websites and other means, and promptly
report the circumstances to management; accordingly, theGroup comes together and takes swift, proper measures under
the system in place.

Community Relations

25

Machinery Sectional Meeting

When complaints are made, the Quality Assurance Departmentsof Core Business Companies take the lead in immediately
checking the facts, and analyzing and verifying the causes. When
problems with quality are deemed to be particularly serious,
the departments make reports to the competent authorities

Respect for Human Rights

Quality Assurance Advisory Council

Quality AssuranceManagement
Department(Secretariat)

Responding to complaints

Society

Quality Assurance Committee

Activity Report of Machinery Sectional Meeting
With respect to the Core Machinery-related Business Companies
that consist of the Machinery Sectional Meeting, Furukawa
UNIC Corporation in January 2022 and then Furukawa Industrial
Machinery Systems Co., Ltd. in April 2022 changed theirorganizational structures from the Quality Control Department to
the Quality Assurance Department, respectively, completing theirunification into the Quality Assurance Division. In order to supply
customers with satisfying products, we are comprehensively
promoting information sharing among the sites together with
monitoring of key processes aimed at reducing the number ofcomplaints. Change point control is positioned as a key item forverification as a preventive measure. We are also strengthening theactive monitoring of design review, initial flow management, risk
assessment during development, and other such activities. Onsite,
we periodically implement quality patrols by workplace and theme.
Since quality is created by each department, all Group officers andemployees, and cooperating suppliers, and provided to customers,
the ideal is to assure the results of a consecutive flow of processes
that are completed at each area of assignment. To this end, we arepromoting quality education to bring each process closer to thecompletion in the assignments and to realize quality improvementfrom the bottom up. As to the Small-group manufacturing
improvement activities that are conducted periodically at every site,

Environment

President & Representative Director

Posted informationmaterials on Basics ofQuality

Sustainability of the Furukawa Company Group

Quality Assurance Management Framework Chart

Strengthening Quality Assurance Framework*1 Failure Mode and Effects Analysis (FMEA): Systematic method of analysis
to prevent problems by predicting their causes at the design and processplanning stages.

Cultivating and Securing Human Resources and Building a Workplace Environment that Makes Work Satisfying

 uality Assurance Basic Policy & Quality AssuranceQ
Action Guidelines

Top managers from the production departments of the Core
Business Companies consist of the Quality Assurance Committee.
This body has organized the Quality Assurance Advisory Council
that brings together those responsible for quality assurance in theCore Business Companies and elsewhere. It also has organizedsectional meetings with the Advisory Council members pursuing
activities separately in the Machinery and Materials segments.
Seeking to achieve solutions to the key issues defined each fiscal
year, we are sharing information on measures to analyze andreduce complaints at each site and seeking horizontal deploymentof methods. We are also promoting compliance with laws andregulations relating to manufacturing, quality assurance, andproduct safety, and promoting the manufacture of products that
customers can use in safety and with a sense of security. Basedon the understanding that product safety is included in quality
assurance, we are also continuously promoting risk assessmentand other such activities to heighten product safety levels.

Employee Health and Safety

Quality assurance in the Furukawa Company Group is based on
the Quality Assurance Basic Policy and the Quality Assurance
Action Guidelines. These set our basic policy as gaining the trustof our customers, providing products and services of quality thatsatisfy them, and contributing to society.
The organization that engages in comprehensive deliberations
on important matters relevant to quality assurance in the Groupis the Quality Assurance Committee, which was established at
the headquarters of Furukawa Co., Ltd. In addition, the Quality
Assurance Management Department has been establishedin the company's Technology Division to manage the Group's
quality assurance framework and promote activities for quality
assurance and product safety. Each organization takes steps
for coordination while engaging the entire Group in our ongoing
effort to provide manufacturing and service that will satisfy ourcustomers and gain their trust.

Quality Assurance Committee

Participants in the Materials Sectional Meeting are the Core
Business Companies that provide materials widely used inelectronic and other such equipment. In October 2021, theYamaishi Metal Co., Ltd. became a company subsidiary andwas included in the Materials Sectional Meeting. Based on ourcustomer-focused approach, the meeting has targeted zerocomplaints and is engaged in improving its quality assurance
system, extending to the goods procured overseas.
In the Materials segment Core Business Companies, risk
assessment involves the use of safety data sheets and othermeans to provide risk information. The release of defective
products is also considered a major risk, and we have promoted
its prevention by implementing failure mode and effects analysis(FMEA*1), which focuses on change point control, to achieve
highly reliable design and automation of inspection. At thissectional meeting, such information is shared and, together withactivities to upgrade the skills of each company, the reduction of
defects within processes is also being addressed.
The target of zero complaints was declared again in fiscal
2023, with continuous implementation of highly reliable design,
prevention of defective product releases, and improvement of
the quality assurance framework, extending to goods procured
overseas. Every company in the Materials Sectional Meeting will
be engaging in activities to further upgrade their skills.

Message from Top Management

Quality Assurance Approach andManagement Framework

Activity Report of Materials Sectional MeetingGroup Overview

S trengthening control of processes forassuring qualityF ostering corporate climate that focuses on qualityIntroducing most up-to-date technology to make
operations more efficient as well as to transfer
technology and maintain and improve quality

CONTENTS

 eightening awareness of product safetyHand security
Declining working-age population
Aging of skilled workers

As a program of Basics of Quality education for all officers andemployees, the Quality Assurance Management Department in theTechnology Division has created information materials that present
an organized view of fundamental matters, starting from "What is
Quality?" These are being communicated through Group portal sites
and works bulletin boards. Occasions for thinking about quality arebeing increased to make all officers and employees aware of Groupquality assurance policies and conscious of their involvement inquality assurance as part of their everyday work.
Surveys are conducted in conjunction with the distribution ofthese information materials. From their results, we are obtaining
indications of the degree of understanding in each operating
department, occupational category, and position, and of theissues, demands, and other such matters relating to quality
assurance in each operation. We are making active use of thesefindings in activities to strengthen future training content as well as
quality assurance systems in each operating department.

Supply Chain Management

The Furukawa Company Group’s Approach ultivation of Human Resources that Support
C
Quality Assurance

Innovation Management

Social Issues (Background)

we have also been upgrading the activity content as an opportunity
to think about how to handle one's independent processes.
Recent years have brought dizzying advances in such digital
information environments and tools as digital transformation (DX),extended reality (XR), and so on. The Machinery segment Core
Business Companies have these in operation or trial use, forexample in the use of work navigation systems, the applicationof sensing and information analysis software, and so on. Whilecarefully studying the validity of these systems, we will continue
promoting their introduction to raise production efficiency,
improve quality, and help improve the environment.

Quality Assurance

Quality AssuranceSociety

Main Related
SDGs●Furukawa Denshi Co., Ltd.
●Furukawa Chemicals Co., Ltd.

Main Actors in Product Development Activities

Status of Research and Development Investment

Research and Development Expenses and Ratios by Business Companies
Technology Division (Materials)

Technology Division (Machinery)20%
Chemicals segment

15%
8%
Metals segment

1%
Materials Field 44％¥1.323billionFY2022Rock Drill Machinery segment

18%

Machinery Field 67％

Intellectual Property Management Framework Chart

Interaction &Technology Division Promotion

Intellectual Property
Department
Interaction

Patent OfficeCore Business Companies●Furukawa Industrial Machinery Systems Co., Ltd.
●Furukawa Rock Drill Co., Ltd.
●Furukawa UNIC Corporation●Furukawa Denshi Co., Ltd.
●Furukawa Chemicals Co., Ltd.

Technology Division●Advanced Technology Department●Material Research & Development Department

OthersCurrent Situation

The Ideal StateThe Intellectual Property Department supports theacquisition of rights on the basis of business strategies
formulated by the Core Business Companies.
In the Core Business Companies, patent application
targets are determined in development plans formulatedon the basis of medium-term business plans and actionplans. The Intellectual Property Department seeks toachieve these patent application targets by prioritizing
the placement of human capital in key fields while
broadly supporting the Group as a whole.

We seek to unify business strategy and intellectual property strategy
by incorporating intellectual property information as an importantelement in the formulation of business strategy. The Core BusinessCompanies and the Intellectual Property Department also treat
business analysis and intellectual property analysis as an inseparable
Medium-Term Business Plan,
Coreshare
Businesswhole, andthe results of analysis with each other.
Action Plan Development Committee,
Companies
In other words, from thecurrent
state, in Committee
which intellectual
Product
Development
property strategy is led by the Core Business Companies, we will
Patent Application Target
transition toward a strategy that combines business strategy and
FormulateintellectualIntellectual
Property
intellectual property strategy through the cooperative efforts of theproperty activity
Department
Core Business Companies and the Intellectual Property Department.

Core BusinessCompanies

4%
UNIC Machinery segment

Materials Field 33％

Intellectual Property Strategy

Industrial Machinery segment

2%

28％

Medium-Term Business Plan,
Action Plan Development Committee,
Product Development Committee

Patent Application Target
Intellectual Property
Department

Machinery Field 56％

Formulate intellectual
property activity

Combining
Business
information

Business Strategy
Intellectual Property

Intellectual property
information

Combining
Business
information

Business Strategy
Intellectual Property
StrategyIntellectual property
information

Sustainability Report 2022

28

GovernanceElectronics segment

32%

1％

Society

Research and development expenses in fiscal 2022 increased
13.6% over the previous fiscal year to ¥1.323 billion. The Core
Business Companies and the Technology Division promoted
the development of new products and new technologies for the
resolution of social issues, including contributions toward saving
manpower, saving labor, and carbon neutrality.

21％
UNIC Machinery segment

Patent manager●Furukawa UNIC Corporation

Rock Drill Machinery segment

Intellectual Property
Department

Main Actors in Research and Development Activities●Furukawa Rock Drill Co., Ltd.

Development
Support andInitiative

10％

Electronics segment

Core BusinessCompanies

・Technological Strategy Department
・Advanced Technology Department
・Material Research & Development Department
・Quality Assurance Management Department
・Intellectual Property Department●Furukawa Industrial Machinery Systems Co., Ltd.

The Intellectual Property Department has been part of theTechnology Division as the core organization for managementof the Group's intellectual property. There is also a patent
manager at each research center and business site (includingCore Business Companies) to organize the intellectual property
activities for each department and to serve as coordinatorbetween inventors and the Intellectual Property Department.
The Intellectual Property Department and the patent managers
in each department coordinate closely as they act together
with the Company as a whole to promote intellectual property
activities.

tual Property
partment●Technology Division

Core Business Companies

Interaction

FY2022

Industrial Machinery segment

Intellectual Property Management Framework

Business
mpanies

Furukawa Co., Ltd.

1％

557

Environment

Sustainability Report 2022

Development Committee

Chemicals segment

Sustainability of the Furukawa Company Group

27(Secretariat)
Corporate Planning Department
Technological Strategy Department of Technology Division8％

Community Relations

The Company has established a Development Committee todeliberate on new technology and new product developmentin the Group. This Committee is chaired by the President &Representative Director, and the Company's Corporate Planning
Department and the Technological Strategy Department of theTechnology Division serve as the secretariat. Meeting twice
per year as a rule, various issues are deliberated, including theselection of research and development and product development
themes, confirmation of the status of progress on research andPresident & Representative Director

31％

Respect for Human Rights

Development Framework

 evelopment
D
Framework Chart

Technology Division (Machinery)

Technology Division (Materials)

Cultivating and Securing Human Resources and Building a Workplace Environment that Makes Work Satisfying

At the Furukawa Company Group, the Technology Division
was established within the headquarters of Furukawa Co., Ltd.
as an organization to strengthen the Group's comprehensive
technological capabilities by leading advanced technologies
and engaging in basic research in order to support productdevelopment in our Core Business Companies.
The basic policy for research and development activity put
forth by the Technology Division is to view all stakeholders within
and outside the Company as customers, and to accurately grasp
the need for solutions to customer issues to engage themes that
contribute to the customer not only over the medium to long term,
but also in the short term, with speed to produce results. To enable
us to combine the development and production capabilities thatare essential to our growth as manufacturers and bring them tobear as the comprehensive technical capability of the Group as awhole, we accept the responsibility for leading the way in mattersfrom drafting technological strategy for the Group as a whole, toevaluating and managing development themes, and to pursuing
advanced technology development. We also engage proactively inopen innovation, such as by accepting technologies from outside theCompany, and by transmitting our technologies to outside parties, inorder to expedite the development for our business expansion.
The strategy for realizing our activities is centered on machinery
products, including not simply equipping products with control/
information/communication technologies that are expected tobe highly developed, such as IoT and AI, but also applying thesetechnologies to production facilities, production control systems,
service operations, and so on. Meanwhile, in connection withmaterials, we are promoting development that concentrates onbattery materials that will contribute to the movement toward carbon
neutrality, which is expected to accelerate in the times ahead, metalmaterials that will contribute to the machinery business, and so on.

The Group's intellectual property activities are based on the
Company's proprietary technologies, and it constantly strives toacquire more broad and powerful rights. The Group's intellectual
property is registered in the Licensable Patent Information
Database and made available to the public for a fee in orderto make effective use of its rights, including the licensing ofintellectual property already acquired by the Company.
Among industrial property rights, the most powerful rights arepatent rights, which is why our basic policy is their acquisition.
We are also promoting comprehensive rights acquisition that
includes the design and trademark systems.

N umber of Domestic Intellectual Properties Owned by Business Companies

Employee Health and Safety

Basic Policy for Research and Development Activities

development and creation of business plans, and so on.
The Technology Division stands at the center of the development
frameworks that function to strengthen the Group's comprehensive
technological capabilities. The Division consists of five departments:
the Technological Strategy Department, the Advanced Technology
Department, the Material Research & Development Department,
the Quality Assurance Management Department, and theIntellectual Property Department, and it proceeds with research anddevelopment while coordinating closely with the Group companies
that are the main actors in product development in fields ranging
from materials to machinery and equipment.

Basic Policy for Intellectual Property Activities

Message from Top Management

Research and Development*1 IP landscaping: A method for performing integrated analysis of intellectual
property within and outside the company, and markets, for use informulating management strategies and intellectual property strategies.

Group Overview

D eveloping machinery products and new materials that contributeto achieving carbon neutrality, saving of resources, etc.
D eveloping machinery products that contributeto saving manpower, saving labor, etc.
S trengthening management of intellectual
property for efficient research and development
activities, and promotion of its utilization

In fiscal 2022, we owned 557 items of intellectual property inJapan. In the machinery business, the Core Business Companies
are the main actors in development, and they own the intellectual
property relating to products. In the materials business, a larger
percentage is owned by the Technology Division, which is thedivision for basic research oriented toward commercialization of
new material development with an eye to the future.

CONTENTS educing CO2 emissions
RReducing the amount of exhaustible
resources used
Declining working age population, aging ofskilled workers

Addressing the Corporate Governance CodeActing in accordance with the revised Corporate Governance
Code of June 2021, the Group will move ahead with adoptionof IP landscaping*1 and invest proactively in intellectual property
activities. Our aim is to enhance our intellectual property portfolio.

Supply Chain Management

The Furukawa Company Group’s Approach

Intellectual Property Portfolio

Innovation Management

Social Issues (Background)Intellectual Property

Quality Assurance

Innovation Management

Society

Main RelatedSDGs easures to address environmental
M
problems

 romoting communication with suppliersP
relating to CSRS trengthening in-house procurement framework
through training of personnel responsible for
procurement and other such means

CSR Promotion Guidelines

Promoting CSR Activities in the Supply
Chain

Sustainability Report 2022

FY2017–FY2019
Number of
suppliers towhich thesurvey wasadministered

Number of
Suppliers
Followed Up(Our Selectionof Eight
Companies)

1st round
154 major
suppliers(out of roughly
1,000)—FY2020

FY2021

FY2022—

2nd round
101 major suppliers(out of roughly
1,000 of theGroup 1)
100% collected andanalyzed

3 companies
None(no problems)

Follow-up on Group
1 begins in fiscal
2023, when thesecond round ofGroup 2 surveys isalso scheduled tobe conducted100%
collected

Giving guidance to a supplierGibraltar Mine

Sustainability Report 2022

30

Governance29

Report of Supplier CSR Survey

Community Relations

In fiscal 2022, the second round of the supplier CSR surveys
was conducted with the 101 major Group 1*2 suppliers,
achieving a response rate of 100%. We identified suppliers thatwere considered high-risk by analyzing and evaluating the total
number of scores allocated according to the importance of eachquestion from the results of the questionnaire.

As raw material for the copper ingots that are the main product of
Furukawa Metals & Resources Co., Ltd., as well as for the goldand silver bullion that are its by-products, that company procurescopper concentrate from mines in Chile, Peru, Canada, the UnitedStates, Australia, Indonesia, Papua New Guinea, and other places.
The company ascertains the actual circumstances at these
supplier mines with regard to environmental protection, humanrights, employment and labor problems and so on, and notes
if sustainable development and appropriate mine operation
are being carried out, thereby contributing to mitigation ofenvironmental impact on a global scale.
Regarding conflict minerals, the company also has the policyof not procuring minerals produced in areas where procurement
would risk furthering conflict by serving as a source of funds forarmed groups and human rights violations.

Society

Supplier Risk Evaluation[Survey questions about respecting human rights andpreventing human rights violations](1)	Prohibition of child labor, forced labor, unfairly low
wages, etc.
(2)	Creating work environments free of discrimination andharassment of employees(3)	Compliance with labor laws and regulations,improving work environments[Survey questions about environmental conservation](1)	Compliance with international standards, laws, regulations,agreements, etc. related to environmental conservation(2)	Energy-saving considerations, using resources
effectively, reducing waste(3)	Proper control of chemical substances in products
and chemical substances discharged into the external
environment during manufacturing processes

In order to continue to maintain trust in the Group’s products,
we must maintain trust not only in the company itself, but also
in the level of procured goods. Therefore, it is vital to survey,
instruct, and manage suppliers—our partners—as to the qualityof their products in addition to human rights, environmental
issues, safety, and other aspects. Our Purchasing Department
is cooperating with Core Business Companies in the Machinery
segment (Furukawa Industrial Machinery Systems Co., Ltd.,
Furukawa Rock Drill Co., Ltd., Furukawa UNIC Corporation) tooffer guidance and recommendations support to suppliers asnecessary.
In fiscal 2022, the methods by which we provided technicalguidance to our suppliers were limited due to the impact of the
COVID-19 pandemic. In particular, with our overseas affiliates, we
held online meetings featuring videos to check and provide guidanceon fabrication processes, material management, quality inspection
frameworks, environmental and safety measures, and more.
For cooperating affiliates in Japan, we gained theirunderstanding of the necessity of visits, and then performed
the checks and provided guidance in small groups over shortperiods of time.

Consideration in the Procurement of
Copper Ore

Environment*1 PDCA: Plan, Do, Check, Action (Improvement) uestions on the Supplier CSR Survey (Human
Q
Rights, Environment, etc.)

Providing Technical Guidance to Suppliers

Respect for Human Rights

The Group's procurement departments consider it essential tohave cooperative relationships not only within the Group, butalso with suppliers and others throughout the supply chain. In
fiscal 2017, therefore, we began providing suppliers, including
new suppliers, with an explanation of the purpose of the Group's
CSR procurement and giving them the supplier CSR survey tocomplete. In fiscal 2020, we visited three suppliers and exchanged
views in order to promote understanding of our CSR activities.
Considering the points for reflection yielded by the initial survey,
a second round of supplier CSR surveys has been conductedfrom fiscal 2022. In order to promote these CSR activities that
extend to the supply chain, and to maintain and improve them,
we have been moving through the PDCA*1 cycle for the processfrom conducting supplier CSR surveys to following up on them.
Starting in fiscal 2023, we will be promoting procurement activities
with awareness of sustainability in addition to CSR activities.

*3 Group 2: Furukawa Chemicals Co., Ltd.; Furukawa Castec Co., Ltd.; Ashio
Rock Drill Co., Ltd.; FRD Iwaki Co., Ltd.

Sustainability of the Furukawa Company GroupBasic Procurement Policies*2 Group 1: Furukawa Industrial Machinery Systems Co., Ltd.; Furukawa Rock
Drill Co., Ltd.; Furukawa UNIC Corporation; Furukawa Denshi Co., Ltd.

Cultivating and Securing Human Resources and Building a Workplace Environment that Makes Work Satisfying

The Basic Procurement Policies of the Furukawa Company
Group have the four pillars of the principles of fairness andimpartiality, mutual prosperity, compliance and confidentiality,and promotion of procurement activities that are considerate of
CSR. In accordance with these policies, and on the assumptionof cooperative relationships with suppliers, CSR Promotion
Guidelines have been formulated that call for respect for humanrights and the environment.

In fiscal 2023, follow-up (monitoring activities, including onsite studies, and guidance to reduce risks) based on the risk
evaluations is to be conducted with the Group 1 suppliers. CSR
surveys of major Group 2*3 suppliers are also scheduled to begin.

Our Purchasing Department is constantly striving to strengthen
the procurement system by holding seminars for the department
members.
Themes of training include the human rights, environment,
quality, and more, and the information is shared on a regular basis.

Employee Health and Safety

Basic Approach

Training personnel responsible for
procurement

Message from Top Management

 tudying on status of support for CSR
S
promotion by suppliers based on survey

Group Overview

 especting human rights and measures toRaddress human rights violation problems

CONTENTSThe Furukawa Company Group’s Approach

Our Purchasing Department holds Purchasing Strategy
Conferences twice a year, which consist of responsible personnel
from Purchasing Departments of Machinery segment Core
Business Companies.
At these conferences, each business company's progress
toward annual targets is checked and exchanges of views
are held for the resolution of issues, with the overall purposeof promoting procurement activities based on the Furukawa
Company Group Basic Procurement Policies.
For fiscal 2022, the core issue for the Purchasing Departments
in Vision for 2025 was the fostering of partnerships. Toward that
end, steps were taken to strengthen supplier management,
conduct specific examinations relating to CSR procurement in
the Purchasing Departments, and engage in exchanges of views.
Regular monthly meetings are also held separately at eachbusiness company to provide occasions for more specificexamination of initiatives in accordance with the policies of thePurchasing Strategy Conference. In addition, meetings are held
on individual projects as the occasion arises and activities moreclosely tailored to circumstances are carried out.

Supply Chain Management

Social Issues (Background)

The Group considers suppliers to be important partners in aiming
for mutual development.
In fiscal 2022, in order to further strengthen our partnerships
even during the COVID-19 pandemic, we took steps to engage
in communication with suppliers inside and outside the country
using web conferencing.
Work on deepening mutual understanding by means of CSR
initiatives is continuing in fiscal 2023, and we hope to foster
further relationships of trust.

Purchasing Strategy Conferences

Innovation Management

Strengthening Relations with Major
Suppliers: Fostering Partnerships

Quality Assurance

Supply Chain Management

1.0
0.8

Society0.6

M 0.08

A 1.66
M 1.020.2

 uman resource shortages accompanyingHdeclining birthrate and aging population

 educing by one-half the rate of diagnosticRfindings from results of periodic healthcheckups

 educing the number of employees whoseRability is diminished due to injury or illness

Furukawa Company Group Health Declaration
Furukawa Company Group was the first in Japan to adopt the
principle of SAFETY FIRST as “Anzen Sen’ichi.” As a pioneerof the industrial safety movement, we have been engaging inefforts to maintain and improve employee safety and health.
The spirit lives on in our Management Philosophy of "remaining
indispensable to society by always embracing the spirit ofchallenge, advancing the technologies that have underpinned
the foundation of society that originated in mining development."
We consider the creation of a workplace environment thatmakes work satisfying and where every employee can take on
the challenge every day of vibrantly realizing their capabilities
and creating new value in good mental and physical health,
to be an essential management issue. Going forward, weare committed to even more proactive efforts in promoting
measures to maintain and improve the health of our employees.

Health Management PromotionFramework Chart
Management
Committee

Industrial physicians

Human Resources &General Affairs Department

Labor Administration
Department at each site

Furukawa Labor Union

Head Office General Safety
and Health Manager

Person responsible forhealth management
promotion

Furukawa Health
Insurance Society

Health Committee

General Safety and
Health Manager

TOPICS

Selected as a 2022 Health &Productivity Stock Selection

Frequency

Safety and Health Committee

Severity

A All industries*3 M Manufacturing industries*4 A All industries*3 M Manufacturing industries*4(Frequency)(Severity)

1.4

Employee Health Management

1.0
0.8
0.6

A 0.09M 0.08

A 0.09 0.06
M 0.06

A 2.09
M 1.310.06

A 0.09M 0.10A 0.09M 0.10

0.86

0.05
0.04

A 1.66
M 1.02

0.03

0.22

0.43

0.4

A 1.83
M 1.20

0.2
0

1.03

0.04

2018

0.07

2019

0.02

A 1.95
M 1.21

0.21

0.01

2020

2021

Furukawa Company Group ESG Data 2022, Social Data

Instruction on Safety at Overseas
Business Locations
As part of its safety guidance to overseas business locations,
the Group conducts legally mandated annual inspections offacilities, safety training, emergency contact systems, acquisitionof official certifications, and implementation of Safety and HealthCommittee and safety patrols, and more. Based on the survey
results, we are also providing guidance and advice, taking into
consideration not only local compliance with laws and regulations,but also local climate, customs, and so on, so that steps can betaken to upgrade the workplace environment and managementlevels to enable employees to work safely and comfortably.

TOPICSHeatstroke Coutermeasures
We are acting to prevent heatstroke by conscientious
management of the workplace environment andimplementation of measures to secure employee safety.
1. Managing the workplace environment
We take steps to establish daily communication andalert people to be aware of heatstroke.
Specifically, this includes (1) observing appropriate
temperature and humidity settings, and not allowing
employees to endure excessive heat; (2) constantly
encouraging employees in summer to replenish theirwater and salt before starting work; and (3) providing
cool rest areas with room temperature set at 24-26°C.
2. Securing employee safety
We take measures suited to the work location in order
to secure the safety of employees.
For outdoor work, we use tents and eaves to ensure
shade from the sun and provide cool, well-ventilatedareas for breaks. We place a heat index meter (WBGT
index meter) at the work location and encourage
people to work shorter hours and replenish their waterand salt. For indoor work as well, we install curtains,
blinds and so on to block direct sunlight on seats bywindows, and take measures to prevent heating.
3. Providing conscientious health management
In order to avoid heatstroke, we hold in-house study groups
to inform employees about heatstroke and preventive
measures and to give them training and guidance.
We also check the state of employee health andaccording to the results of health checkups, we
provide for interviews with specialist physicians.

0.01

A 0.09M 0.07

A 1.80M 1.205Notes: 1. Accident frequency refers to the rate of occupational accidents with casualties per one
million total working hours.
2. Accident severity refers to the number of working days lost per 1,000 total work hours.
3, 4. Figures for all industries and for manufacturing industries are the Survey on Industrial
Accidents conducted by Ministry of Health, Labor and Welfare.
5. Frequency and severity are calculated on the basis of incidents requiring leaves ofabsence of at least four days.

2022 (FY)0

Sustainability Report 2022

Sustainability Report 2022
FY2018
Number of absences

FY2019FY2020

FY2021

FY202232

GovernanceIn the Group's health management divisions, employee healthis managed by periodic health checkups, special healthexaminations for employees with designated duties, and so on.
They also provide health guidance based on health checkup
results and give support for promoting employee health. We arealso taking steps to arrange separate in-house smoking areas
based on the intent of the Health Promotion Act, and we aremaking every effort to prevent second-hand smoking.

1.2

0.05

0.05

FY2022

1

Community Relations

31

Occupational Safety Record of the Furukawa Company
Group: Frequency*1 and Severity*2 of Accidents

FY2021

1

Respect for Human Rights

Furukawa Co., Ltd. has been selected for the "2022 Healthand Productivity Stock Selection" jointly conducted by
the Ministry of Economy, Trade and Industry and theTokyo Stock Exchange(TSE) as a company withparticularly
outstanding
healthmanagement
initiatives that strategically
implement
employeehealth management from amanagement perspective
among companies listedon the TSE.

To prevent industrial accidents, the Group regularly holds Safety
and Health Committee meetings and carries out safety patrols
at its respective works and business sites. We also implement
systematic training and training tailored to our employees.
Regarding education, we are systematically implementing
training for all employees, including managers and supervisors,
to improve hazards sensitivity. We are doing this based on our
grasp of the characteristics of each workplace so as to further
heighten training effectiveness. In order to correct unsafe
conditions and actions at work, we are also having managers
and supervisors intensify their inspection tours of the worksites.
In fiscal 2022, industrial accidents showed an increase year
on year both in frequency of occurrence and severity. We are thus
taking steps to further strengthen training to improve hazards
sensitivity, and to communicate with each workplace and site
to determine the content of corrective and preventive measures.
In the last five years (fiscal 2018 to 2022), there have beenno fatal industrial accidents involving Group employees or
employees of cooperating companies sited on our grounds.

FY20202Society

Person responsible forhealth promotion
Officer responsible for
personnel matters

Initiatives to Prevent Industrial Accidents

FY20194

Environment

The officer of the Group responsible for personnel matters also
has responsibility for health promotion and takes the lead indrafting and implementing various plans centered mainly in the
Human Resources & General Affairs Department. The person
responsible for health promotion also presents periodic reportson the status of employee health to the Management Committee
and makes decisions on policy relating to matters such as theimplementation of health management promotion.
The Human Resources & General Affairs Department
coordinates health checkup data from the Health Insurance Society
and the employee database to identify health issues, and plansand drafts appropriate measures while incorporating guidancefrom industrial physicians as well as opinions and requests
from the labor union. Implementation of measures takes placethrough those in charge of health management promotion in eachdepartment, who communicate the measures to the employees.
After implementation, information is shared with the Safety and
Health Committee in each department, with its effectiveness also
verified and used as feedback in review of the measures taken.

FY2018Sustainability of the Furukawa Company GroupThe Furukawa Company Group issued a Health Declaration
dated January 1, 2021, and we have further strengthened ourefforts to promote health management.

Number of absencesfrom work

Cultivating and Securing Human Resources and Building a Workplace Environment that Makes Work Satisfying

Health Management Promotion Framework0

Employee Health and Safety

Health Declaration

The Group is implementing measures on the basis of the Basic
Principles of Occupational Safety and Health and the Occupational
Safety and Health Policies to prevent industrial accidents and tocreate a safe and healthy workplace environment.
The Sustainability Promotion Meeting (chaired by the President &Representative Director), which is held annually, and the Environmental& Safety Management Committee (chaired by the General Manager,
Environmental & Safety Management Department) hear reports andengage in deliberation on the results of the previous fiscal year's
occupational safety and health activities, this fiscal year's Occupational
Safety and Health Activity Targets, and other such matters.
Environment and Safety Promotion Framework Chart(P19)
Basic Principles of Occupational Safety and Health &Occupational Safety and Health Policies

2022 (FY)

Message from Top ManagementImprovement of workplace environment by
maintaining employee health and safety educing by one-half the number ofR
employee absences due to injury or illness

2021

Supply Chain Management

 anagement of occupational safetyMand health in light of changes in social
environment and other such factors

Occupational Safety and HealthApproach and Promotion Framework2020

 umber of Incidents Requiring Leave of Absence inN
the Furukawa Company Group*5

Group Overview

The Furukawa Company Group’s Approach

0.01

A 0.09M 0.07

A 1.80M 1.20

2019

0.02

0.01

M 1.21

0.21

CONTENTS

Social Issues (Background)

The Group recognizes that the presence of some employees with healthcheckup results suggesting follow-up checks, and the occurrence of
employees who leave the workplace due to injury or illness, or who work
while injured or ill so that their ability is diminished, are management
risks. Therefore, we are working to achieve 100% participation inperiodic health checkups, improvement of the percentage receiving
complete examination and participating in health programs, increased
awareness of stress in the workplace, and reduction of smoking.

0.03

Innovation Management

Employee Health and Safety

2018

0.04

Quality Assurance

0

0.05

Main Related
0.22
SDGs
A 1.950.43

A 1.83
M 1.20M 1.31

A 0.09M 0.100.86

0.4

System and Measures

0.06

A 0.09M 0.10Society

Main RelatedSDGs eightening expectation of improved valueHof human capital in corporations

Relationships with Employees

Basic ApproachList of Education and Training Activities
Grades 1-4(regular employees)

Grades 5-9(managerial employees)
Grade 5 training

Introductory training for newly hired employees
Follow-up training

Safety and health training

Conversational English education

Human rights training

Grade 6 training

Fifth-year training for corporate planning staff

Grade 8 training

Grade 4 training

Training to cultivate next-generation executives

Mental health training

Diversity training
Life plan training"Line care" training (for line managers to better manage their lines)

Compliance training

Engineer training
Job-specific training
Participation in specialized subject seminars (including those furthering acquisition of public qualifications)

Dispatch to outside educational and research institutions and academic societies
Health and safety education
OJT

Language
Training
Personnel System
and Measures

Sustainability Report 2022

Introduction of instructional materials, publications, etc.
Training in the form of open applications (e-learning)
Coaching system

Personnel evaluator training

Self-assessment and interviews based on personnel evaluation system
Interviews relating to goal management
Rotation and secondment to affiliates in Japan and overseas

The Group does not engage in any discrimination regarding humanrights, beliefs, gender, disabilities, and so on in employment, and
we endeavor to provide equal opportunities for all. Because
Group businesses extend into a variety of fields, we are taking
measures to stabilize our employment by formulating staffing
and personnel plans with a clear view to business expansion andproductivity increases, including in Group companies.

Refreshment area

Empowering the Female Workforce
The Company is continuing to actively hire and involve women.
We created the Action Plan for Promoting Support for Female
Employees on April 1, 2016, and we are gradually upgrading various
systems that are designed to support active participation by women.
We are also upgrading systems for the support of employees raisingchildren by classifying a portion of childcare leave as paid leave.

Action Plan for Promoting Support for Female Employees(Planned period: April 1, 2021 to March 31, 2026)
Target 1 Ensure that women account for at least 20% of all new graduate recruits
Target 2 Appoint at least 10 female managers
Target 3 The rate of resignation for personal reasons within five years of joining
the Company among women in planning group positions 10% or below
Target 4 Encourage employees to take paid annual leave at an averagerate of 12 days per person per year

Community Relations

33

Diversity and Inclusion

Correspondence courses of all types■ Establishing refreshment areas
Refreshment areas have been
established in the new offices.
These can be used for simple
meetings as well as during
break periods, and they areproving useful as places fora refreshing change of scene.

* This applies to employees of Furukawa Co., Ltd.
Sustainability Report 2022

34

GovernanceSelf-development

Short-term overseas language studyIssues and Considerations for Realizing Rewarding
Work Environments
Developing
Developing diverse human resources in response to factors
humansuch as their length of service, position, job description, andresources and abilities; putting the most capable employees in the rightusing thempositions regardless of what track they are on; establishingproperly
challenging individual targets; and proper evaluation
Improving working environments such as automating andWork-stylecomputerizing operations, shortening meetings, effectively
reforms to
managing meetings; aptly applying various working conditions
increase(flextime systems, teleworking, discretionary work systems); andproductivity
reforming of mindsets toward improving operational efficiency
Reducing annual total working hours, improving theEstablishingpercentage of paid annual leave taken, improving thehealthy
percentage of scheduled medical examinations received,
workplaces
actively implementing health promotion activities

Respect for Human Rights

Language training for employees dispatched overseas
Language training (foreign language training at sites)

Realizing Rewarding Work Environments

Society

Workplace Training by specialty/
Educationfunction

TOEIC testing

The Group employs talented individuals who will proactively takeon all challenges, while striving to recognize the diverse valuesof individuals, accordingly creating a rewarding corporate culture
wherein human rights violations and discrimination do not occur
and where individuals are evaluated fairly.

Environment

Special Training

Employment
Grade-specific Training

Newly hired employees

Pre-hiring training

Realizing Rewarding Workplace■ Promotion of digitization of documents andpaperless operation
There is a limit to the storage capacity of individual
lockers and cabinets shared within the various
departments. We have therefore been promoting thedigitization of documents and paperless operation since
before the move of offices and are making effective
use of office space. Digitization also enables viewingof documents when away from the office and whenworking from home, and combined with the promotionof on-line review and approvals and so on, this has
contributed to increased efficiency of operations.

Sustainability of the Furukawa Company Group

Human Resource Development
The Group is aiming to optimize its business framework andheighten its corporate value by developing professional humanresources through human resource cultivation systems of all
kinds and by building a workplace environment where they can
exercise their capabilities to the fullest.

■ Transition from fixed landline phones to mobile phones
In conjunction with the transition to free-address
offices, in-house telephones, including departmental
representative telephones, were changed from the former
fixed landline phones tosmartphones. Since thisenables internal calls
even when outside theCompany, it is also a
step toward smoothercommunication
when
An office after introduction ofworking from home.
free-address system

Cultivating and Securing Human Resources and Building a Workplace Environment that Makes Work Satisfying

Basic Approach to Human Resource Management
Premised on its fundamental policy of “what supports limitlessdevelopment of a company is people,” the Furukawa Company Group
employs talented individuals who will actively take on all challenges, while
striving to recognize the diverse values of individuals and accordingly
creating a rewarding corporate culture absent of human rights violations
and discrimination, where individuals are evaluated fairly.

Interviews are conducted between immediate supervisors andtheir subordinates on a twice-yearly basis, in addition to the daily
communication that takes place between managers and theiremployees. In the interviews, managers provide feedback to
employees regarding their work, achievements, points for reflection,and findings of performance evaluations, as well as advice basedon their self-reports, and confirm and share the goals they have set.
Meanwhile, supervisors also provide their assessments with respect
to the self-analysis. The process of undergoing straightforward
performance assessments by their supervisors enables employees
to scrutinize themselves on a regular basis, thereby helps fuel theirmotivation for proactive career development.

Employee Health and Safety

Cultivating and Securing Human Resources ommunication to Facilitate Training ofC
Subordinates

Message from Top Management

 eightening awareness of respect forH
diverse human resources and work styles

Aiming to realize a workplace environment that is easier towork in, the Company took the head office move on July26, 2021 as an opportunity to do away with fixed individualdesk assignments and introduce free-addresses system
to allow employees to freely choose their desk.

Group Overview

 eveloping professional human resourcesDand building workplace environment where
employees in various circumstances can
exercise their capabilities to the fullestO ptimizing of assessing results/behavioral
characteristics, providing guidance/cultivation,
developing capabilities, assignments and treatments
Coordinating engagement surveys andmeasures of all kinds

CONTENTS

 eclining working-age population and laborDproductivity per worker in Japan

Introduction of Free-address Systemin the New Head Office as a Move
toward Realizing an Easy-to-Work-in
Workplace Environment

Supply Chain Management

The Furukawa Company Group’s Approach

TOPICS

Innovation Management

Social Issues (Background)

Personnel Evaluation System
Based on the system of assigning grades by function that is usedin the Group, grades are set according to the magnitude of the role
the employee is expected to fulfill. By assessing personnel results
and behavioral characteristics in accordance with the personnel
evaluation system, we are endeavoring to provide employee
guidance and cultivation, develop their capabilities, and optimize
their assignments. At the same time, this serves to provide fair andequitable treatment in terms of wages, bonuses, retirement benefits,
and so on, and in establishing an environment wherein motivatedemployees can participate proactively with a sense of security.

Quality Assurance

Cultivating and Securing Human Resources and Building
a Workplace Environment that Makes Work SatisfyingSocietyFurukawa Company Group ESG Data 2022, Social Data

The Furukawa Company Group’s ApproachInternationally recognized respect forhuman rights
Consideration regarding human rights
issues that exist at every level and in every
unit of activity throughout the company

Implementing human rights training
Strict response to harassment anddiscriminatory behavior
Consideration for implementing humanrights due diligence

Training on Human Rights

In the “Furukawa Company Group’s Charter of Corporate
Conduct” and the “Furukawa Company Group’s Code of
Conduct for Officers and Employees,” the Group states thatthe human rights of all people are to be respected, that childlabor and forced labor are forbidden, and that discriminatory
treatment, behavior, and speech are not to be engaged in withregard to nationality, race, gender, age, faith, religion, social
status, disability, and so on.

The Group has established a code of behavior calling for ourofficers and employees to respect basic human rights andrefrain from using discriminatory language, and accordingly
has all of its new employees take part in human rights training.
Additionally, employees who take part in our employment
grade-specific training undergo in-house training pertaining toworkplace harassment and other efforts to create pleasant work
environments and learn from specific case studies that lead torespect for human rights.

 urukawa Company Group’s Code of Conduct forF
Officers and Employees

Education

Organization of social studies field trips for children
and students

Culture and arts

Operation and management of Furukawa Kakemizu Cluband Furukawa Ashio Museum of History, maintenancemanagement and utilization of historic sites

Environmental
conservation

Tree-planting activities

Scenes of social studies field trip

Hirose River Volunteer Cleanup Activity
Scene of human rights training session

Each company in the Group participates in volunteer cleanup
activities as part of efforts to contribute to their local communities.
In April of fiscal 2022, five members from the Tohoku Branch
Sustainability Report 2022

36

Governance

Examples of Social Contribution Activities

Community Relations

Sustainability Report 2022

Main content of activity

Respect for Human Rights

35

Field of activity

Harmonious
coexistence with Participation in local volunteer cleanup activities
local communities

Initiative to Prevent Human Rights
Violations
The Group prohibits all forms of harassment and discrimination,
premised on our commitment to recognizing the diverse valuesof individuals and accordingly creating a rewarding corporate
culture absent of human rights violations and discrimination, whereindividuals are evaluated fairly. Moreover, we resolutely take action
against harassment and discrimination based on our internal rules.

 ields for Concentration in Social Contribution
F
Activities

Society urukawa Company Group’s Charter of Corporate
F
Conduct

 urukawa Company Group’s Code of Conduct forF
Officers and Employees

Ashio Rock Drill Co., Ltd. regularly offers social studies field trips
for children from Ashio Elementary & Junior High School, which
is located in the area. In fiscal 2023, Ashio Rock Drill invited five
third-grade children and their teacher in June.
On the day of the trip, visitors first heard explanations of
the products the company manufactures, the sites where those
products are active, and other such matters. They then visited the
manufacturing line for pneumatic and hydraulic small breakers
and also actually experienced for themselves the power of rock
drills at the hand-held pneumatic rock drill hands-on experiencecorner located in the works. The children voiced various
impressions, such as their surprise at learning that robots are in
operation 24 hours a day, and how their interest was stimulated
to learn more about hydraulic machinery. The company willcontinue implementing this field trip program into the future.

Environment

Basic Approach urukawa Company Group’s Charter of Corporate
F
Conduct

 osting Field Trip for Ashio Elementary &H
Junior High School

Cultivating and Securing Human Resources and Building a Workplace Environment that Makes Work Satisfying

Social Issues (Background)

Certificate of Participation in the Hirose River 10,000 People Project

Sustainability of the Furukawa Company Group

Main Related
SDGs

Employee Health and Safety

Respect for Human Rights

The Group takes an active part in society, and its policy ofcontributing to the development of society is stated in the Charterof Corporate Conduct and the Code of Conduct for Officers andEmployees.
Activities that are closely connected with local communities
include participation in local volunteer cleanup activities andinviting children and students for social studies field trips. By
implementing these activities, we are channeling our efforts into
activities for harmonious coexistence with local communities that
contribute to their development.
We also engage in activities to promote the attractions oflocal communities. As one part of this, we operate and manage
the Furukawa Kakemizu Club and the Furukawa Ashio Museumof History in Ashio-machi, Nikko City, Tochigi Prefecture, thereby
contributing to the maintenance and development of local
culture.

of Furukawa Industrial Machinery
Systems Co., Ltd., having
implemented measures against
COVID-19 pandemic, participatedin the "31st Hirose River Basin
Total Cleanup of the Hirose River
10,000 People Project" held in
Sendai City, Miyagi Prefecture.

Message from Top Management

Relationships with Employees

Basic Approach to Social Contribution
Activities and Fields for Concentration

Implementing
volunteer cleanup activities
Hosting social studies field trips
Tree-planting activities

Group Overview

We are implementing organizational diagnostic surveys of the Group
as a whole and of each workplace systematically composed to cover
morale, corporate climate, and so on. We are collecting and evaluating
information on the degree of penetration by the Management Philosophy
and vision, on employee awareness, and on on-site views, and putting
it to practical use in planning and drafting policies of every kind.

 armonious coexistence with local
Hcommunities
Contribution to local communities bycreation of employment, etc.
Consideration for the environment

The Furukawa Company Group’s Approach

Supply Chain Management

Hiring Foreign Nationals
Given its active pursuit of overseas expansion, the Group does
not base its recruiting decisions on nationality. Moreover, we
strive to deepen partnerships that transcend nationality as we
promote a spirit of mutual respect for individual differences.

Implementing Engagement Surveys

Social Issues (Background)

Main Related
SDGs

CONTENTSHiring People with Disabilities
The Furukawa Company Group promotes hiring people withdisabilities in various workplaces and for various types of work,
thereby promoting their independence and participation insociety.

Community Relations

Innovation Management

Extending the Mandatory Retirement Age
The mandatory retirement age was raised from 60 years to 65
years on April 1, 2020, in order to stabilize the employment ofelderly people and expand their opportunities for work.
Going forward, we anticipate that these people, by passing
on the technical knowhow they have acquired over many years,
will proactively participate in cultivating mid-level and younger
employees as well as in other ways.

Quality AssuranceSupport for Employees Raising Children
As part of measures to support rearing of the next generation,
we have formulated and implemented a General Business Owner
Action Plan. At the same time, we are promoting improvement of
the workplace environment to make it easier for people to takepart in childcare and home care.

Governance

Main RelatedSDGs

M anagement Council and Management Committee ecuring appropriate information disclosureS
and transparency regarding management
Raising effectiveness of the Board of
Directors
Examination by the Board of Directors of
initiatives to address sustainability issues

 trengthening the supervisory functions ofS
the Board of Directors
Prompt decision-making and clarification of
responsibility in the execution of businessStrengthening transparency and soundnessof management
Stimulate and enhance the Board of
Directors’ deliberations

Basic Approach

Directors and Board of Directors

Corporate GovernanceAnnual Report (Integrated Report)

Corporate Governance Framework

The Company voluntarily established the Nomination &Remuneration Committee, the majority of whose members are
Independent Outside Directors, as an advisory body to the Boardof Directors. The Board of Directors consults the Committee about
matters regarding candidates for Director and Audit & Supervisory
Board Member, the appointment and removal of Representative
Directors and Responsible Directors, and Director remuneration;
the Committee reviews the matters and reports back as necessary.

Shareholders’ Meeting
Election and dismissal
Interaction

Accounting Auditors

Consultation

Reporting
Nomination & Remuneration Supervising
Committee

Reporting Reports

AuditsInteraction

Interaction<Business execution>
Representative Director

ReportingManagement Committee
Executive Officers

Accounting Dept., others
Sustainability
Promotion
Meeting

Risk
Management
Committee<Internal Control Division >All Divisions, Departments and Group Companies

37

Sustainability Report 2022

AuditsSustainability Report 2022

38

GovernanceManagement Council

Internal Audit Department

AuditsSociety

Audit & Supervisory Board Members
Audit & Supervisory Board

Election and dismissal

Compliance

As I see it, the three roles expected of Outside Directors are monitoring and supervising management, giving advice and approval
regarding business strategy and related matters, and incorporating the views of shareholders and stakeholders. The most important of
those, I think, is monitoring and supervising management. In order to check whether governance and compliance are being fully assured
when making management judgments, it is essential to have monitoring and supervision from outside perspectives. For advice andapproval regarding business strategy and related matters, the Company uses an Executive Officer System so that planning of shortterm business measures and their execution are left to Inside Directors and Executive Officers. However, we make a point of actively
expressing our views and advice when it comes to approaches and directions for formulating medium- to long-term management
strategy and related matters. As to incorporating the views of shareholders and stakeholders, I try to avoid the type of state described as"what's common sense within the company is senseless out in the world" by always speaking from a perspective that considers what iscommon sense outside the Company. In terms of my responsibility to the shareholders, I will go on fulfilling my role as an Outside Director
by helping to ensure that the Group grows sustainably and is able to earn commensurate results and provide returns to shareholders.
I am aware that the interest in sustainability is growing daily in the world at large, as well. The Company underwent major
experiences in the past with environmental problems at the Ashio Copper Mine, and it is from self-reflection on that experience that
the Company has been focusing its energies on environmental consideration and countermeasures. As I see it, it is only right that
initiatives to reduce CO2 emissions and achieve carbon neutrality should be handled in line with the demands of the times, and I
think it is important to implement them certainly and soundly while taking a long-term perspective.
In order for the Group to achieve major growth going forward, I believe it is crucial to consolidate ourmanagement resources through selection and concentration. I recognize that the challenge for managementin the future is to find and grow such seeds of growth and to present a growth strategy for them.
I think that a major part of the Outside Director's role is monitoring and supervision of management. I
will continue doing my best to demonstrate my sense for detecting problems in the atmosphere and in thecircumstances before they occur, and to provide solutions to problems in advance. For that, it is a precondition
that the entire Group be open to allowing information to freely circulate. I also want to go on carrying out myrole as an intermediary who brings the intentions of shareholders and stakeholders into alignment with theGroup's orientation and timeline. I will work to make the results of those efforts contribute in whatever little Outside Independent Director
way I can to the Group's growth and will endeavor to improve the Group's corporate value.
Yoichi Mukae

Risk Management

Executive Officers perform their tasks according to business plans
determined by the Board of Directors, and report the status ofbusiness execution as appropriate to the Board of Directors andthe Management Committee. The Company has 13 Executive
Officers as of June 29, 2022, including two concurrently serving
as Directors.

Corporate Governance

Message from an Outside Independent Director

Election and dismissal
Directors
Board of Directors

Basic Policy on Establishing an Internal Control System

Executive Officer System● Corporate Governance Framework Chart

AuditsThe Company elects people with a wealth of experience,expertise, and objective perspectives in various fields to thepositions of Outside Director and Outside Audit & Supervisory
Board Member, thereby ensuring the validity of our businessdecision-making and the effectiveness of the supervision andauditing of our business management. As of June 29, 2022, theCompany has three Outside Directors and two Outside Audit& Supervisory Board Members, four of whom are Independent
Officers as stipulated by the Tokyo Stock Exchange.

The Group has set forth “Basic Policy on Establishing an
Internal Control System” regarding corporate governance, risk
management, compliance, and internal audits. The Group ispursuing improvement of the system not only to secure efficientand appropriate execution of business, but also with a view topromoting sustainability. In addition, the Group is endeavoring tobuild an effective and efficient internal control system in order toimplement consistent, ongoing review of this policy and ensure
the appropriateness of operations.

Environment

The Group’s operating holding company Furukawa Co., Ltd.
has adopted the system of a company with Board of Directors
and Audit & Supervisory Board, and through them supervises
business execution. The Company also employs an Executive
Officer system which facilitates prompt decision-making andclarification of responsibilities in terms of keeping management
supervisory functions separate from executive functions.

Nomination & Remuneration Committee

 utside Directors and Outside Audit &O
Supervisory Board Members

Internal Control System
Sustainability of the Furukawa Company GroupThe Furukawa Company Group maintains fundamental policies
regarding corporate governance with respect to heightening
managerial transparency, building an effective managerial
framework through ongoing efforts to transform its corporate
structure, increasing its corporate value by generating
consistent profits, and contributing to its shareholders and otherstakeholders.

The Board of Directors, which is chaired by the Chairperson &Representative Director, holds regular meetings once a month,and extraordinary meetings as necessary, to supervise theGroup’s overall business execution. The Board consists of nine
members as of June 29, 2022, including three Outside Directors.

Audit & Supervisory Board and Its Members
The Audit & Supervisory Board determines matters regarding Audit &Supervisory Board Members’ execution of duties, including auditing
policy, and methods of investigating determining executive operations
and financial circumstances. Pursuant to audit policy formulated by
the Audit & Supervisory Board, Audit & Supervisory Board Members
attend important meetings including those of the Board of Directors
and the Management Council, listen to reports from Directors, conduct
field investigations at business sites and subsidiaries, and more to
audit the execution of operations by Directors and others. As of June29, 2022, the Audit & Supervisory Board consists of four members,
including two Outside Members, and meets as appropriate.

To analyze and evaluate the effectiveness of the Board of
Directors, the Company conducts questionnaire-based annual
surveys of Directors and Audit & Supervisory Board Members,
and exchanges opinions with Outside Officers. The results of these
activities are reported to the Board of Directors for discussion.
In fiscal 2022, the evaluation of effective functions showeda rise relative to that of the previous fiscal year. However, views
desiring occasions for freer exchanges of opinions were seen.
From fiscal 2023 onward, further improvements will be madethrough the following initiatives: (1) increasing opportunities to
explain and report on the current status and challenges of theGroup; (2) providing earnings information and other data of every
kind in a form that is readily accessible at all times; (3) expanding
discussions on the status of dialogue with shareholders(investors); and (4) expansion of information sharing on thebusiness of each Group company.

Message from Top Management

The Furukawa Company Group’s Approach valuating the Effectiveness of the Board ofE
Directors

Group Overview

Social Issues (Background)

The Management Council sets the Group’s fundamental
management policies and strategies, and makes decisions onimportant matters. Key managerial issues addressed by theManagement Council are referred to the Board of Directors
for discussion and decisions. Meanwhile, the Management
Committee meets monthly to report on the business execution of
the Company and its Core Business Companies, and accordingly
reviews such matters and provides direction in that regard.

CONTENTS

Corporate GovernanceGovernance

Main Related
SDGs

Social Issues (Background)

The Furukawa Company Group’s ApproachDiversificationof risks as society changes
Responding to risks that emerge due toenvironmental changes

Rediscovering
diversified risks andassessing their impact on the Group
Strengthening measures against risks
that are predicted to emerge and have asignificant impact on the GroupI dentifying and assessing risks and confirming,
evaluating, and improving measures to deal
with risks in order to respond to changes intheir impact on the Group
Fosteringa corporate climate that values
compliancePromoting corporate activities that are
based on a strong ethical sensePreventing compliance violations andresponding promptly when they occurContinuing
implementation of complianceeducation
Developing and improving guidelines andmanuals of every kindReporting compliance violations in a timely
and appropriate manner and implementing
comprehensive measures for correction andprevention of recurrenceR esponding to results of compliance awarenesssurveys and formulating related measures

Risk Management Framework

Instruction

Sustainability
Promotion Meeting
Comprehensive deliberations Interaction
on Sustainability and CSR

Reporting

Risk Management Committee(Secretariat)

Instruction

Environmental Risk Sectional Meeting

Implementation Bodies (PDCA cycle)

Furukawa Co., Ltd.

Sustainability Report 2022

×

×

×

×

×

Iwaki
Works

Earthquake×

Flood
Landslide×

Tsunami××××

TyphoonDegree of potential risk: ◎ High 〇 Medium △ Low × Significantly low

BCP Operation
In order to enable prompt confirmation of the safety of officers
and employees and the damage status of every site when
emergencies occur, we conduct periodic personnel safety
confirmation training using the personnel safety confirmation
system and disaster reporting training using transceivers placed
at primary business sites for use in emergencies. We also
carry out reviews of the content and management methods ofstockpiled food, beverages, and other supplies.
Because the head office was moved in fiscal 2022, BCP
training involved setting up the location for an emergency
response headquarters, confirming the equipment that can beused during disasters, checking evacuation routes, and so on.

BCM Operation

Relevant Department
Furukawa Industrial Machinery
Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa UNIC Corporation

Osaka
Works

Furukawa Metals &Resources Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.

Going forward, we will concentrate on BCM operation and on
confirming and reviewing Group companies' BCPs, centering
this work mainly within the Group BCP Sectional Meeting.

Compliance Education
The Group is engaged in fostering a corporate climate that places
value on compliance. This includes publication of the ComplianceNews as provision of information regarding compliance to all
Group officers and employees. On occasion, top management
also explains the importance of compliance and the priority
assigned to it.
In light of the impact of the COVID-19 pandemic, trainings
on specific topics were conducted in fiscal 2022 using online
systems such as web conferencing systems and video streaming.

 harter of Corporate Conduct/Code of Conduct forC
Officers and Employees /Basic Policy for Preventing
Bribery and Corruption

54 people (1 time)
Approx. 190 people (2 times)

Basic Policy and Basic Guidelines forPreventing Bribery and Corruption
The Group reported to the Board of Directors and enacted the
Basic Policy for Preventing Bribery and Corruption and the Basic
Guidelines for Preventing Bribery and Corruption in January 2021.
This explicitly stated externally the Group's stance regarding
prevention of bribery and corruption. It also clarified specificprocedures for preventing bribery and corruption in businessactivities. We are following up with comprehensive compliancewith this policy and guidelines and taking steps for the preventionof bribery and corruption.

Internal Reporting System
The Group has adopted an internal reporting system to facilitate
early detection and correction of compliance violations.
This has involved developing a framework that enables
an extensive range of reporting and consultation requests by
establishing the Internal Reporting Desk inside and outside (lawoffice) the Group. When reports and requests for consultation
are received, the Compliance Committee investigates andtakes measures as necessary. Personal information about
whistleblowers who make reports and information that may
lead to identification of whistleblowers who make reports
are held under strict control at the Internal Reporting Desk. In
addition, it is forbidden for Group officers and employees toseek out whistleblowers or, taking the fact of having made aninternal report as the reason, to treat the whistleblowers in a
disadvantageous manner.
The Group also facilitates awareness of the internal reporting
system by posting such content to its in-house portal site anddistributing brochures to its officers and employees.

Sustainability Report 2022

ComplianceCore BusinessCompanies

SakuraWorks

Training on the Subcontract Act

40

GovernanceGroup BCP Sectional Meeting

TakasakiOyama
Tochigi Works Yoshii Works

135 people (4 times)

Training on buying and selling and subcontracting

Risk Management

Comprehensive deliberations
on Enterprise Risks
Reporting
Sustainability Promotion Department
Human Rights Risk Sectional Meeting

HeadofficeThe Group's chief executive for compliance is the Company's
President. Personnel responsible for compliance are also present
in every company department and in the Group companies aswell. There is also a Compliance Committee that promotes
Group compliance activities, deliberating on important mattersrelating to compliance, developing the compliance framework,and taking steps to strengthen awareness. Content deliberated
in the Committee is additionally reported to the Sustainability
Promotion Meeting as required, and steps are taken to share
information related to compliance with the Group as a whole.

Compliance training

Society

Board of Directors/President& Representative Director● Natural disaster risks by site

Compliance Framework

Number of trainees(number of sessions)

Training

Corporate Governance● Risk Management Framework Chart

Potential Risks of the Group in Natural Disasters
The potential risks of natural disasters faced by primary businesssites are brought to light and a BCP is formulated for those that
present high risk of an impact on business.

In addition to complying with laws and regulations, the Group
believes it has a corporate obligation to take serious andresponsible action in terms of social and ethical aspects.
To fulfill this obligation, the Group established the Furukawa
Company Group’s Charter of Corporate Conduct and the
Furukawa Company Group’s Code of Conduct for Officers andEmployees, and the Group is taking steps to foster comprehensive
awareness to enable all Group officers and employees to engage
in operations in awareness of the importance of compliance.

● Training conducted in fiscal 2022

Environment

The previous Risk Management Committee that up to now had
dealt with accidents, natural disasters, rampaging epidemics,
and other such risks has been disbanded, and a new Risk
Management Committee has been established to manage all therisks surrounding the Group.
The new Risk Management Committee evaluates risks inevery Group company and department and conducts examinationand evaluation of measures to address risks. As a result, whena risk is judged to pose a danger of seriously affecting Groupmanagement, the Committee promotes effective management ofthat risk by reporting its evaluation results and the pros and consof response measures to the Board of Directors.

Business Continuity Plans (BCP) /Business Continuity Management (BCM)

Basic Approach

Sustainability of the Furukawa Company GroupThe Furukawa Company Group will strengthen and expand
the enterprise risk management system in order to improve themanagement foundation with a view to growth. The Group will also
take steps to improve corporate value by business operation practices
that show consideration for the Group's CSR and ESG issues.
When risks emerge that appear capable of interfering with theGroup's business activities, the new Risk Management Committee
established at Furukawa Co., Ltd. takes measures to protect lifeand property and to minimize its damage and losses.

The Committee also has the Human Rights Risk Sectional
Meeting, Environmental Risk Sectional Meeting, and Group BCP
Sectional Meeting under it. These meetings address issues relating
to human rights, issues relating to carbon neutrality and other mattersconcerning climate change, and issues relating to business continuity
when crises occur, and take measures to resolve them, respectively.

Message from Top Management

The Furukawa Company Group’s Approach

Group Overview

Social Issues (Background)

Basic Approach

39

Compliance

Main Related
SDGs

CONTENTS

Risk Management